Alliance Laundry's US stock IPO debut surged 13%, with its market value surpassing Whirlpool in one go
Alliance Laundry Holdings went public on the New York Stock Exchange on Thursday Eastern Time, with an opening price of $24.50, closing up 12.82% on the IPO day. The company's market capitalization exceeded $4.5 billion, surpassing Whirlpool. In this offering, 24.4 million shares were sold directly by the company, and 13.2 million shares were sold by existing shareholders. Alliance Laundry is a global leader in the production of commercial washing machines and dryers, with a market share of approximately 40% in North America
According to Zhitong Finance APP, Alliance Laundry Holdings (ALH.US) debuted on the New York Stock Exchange on Thursday Eastern Time, with an opening price of $24.50, closing up 12.82% on the day of the IPO; previously, its oversubscribed initial public offering (IPO) was priced at $22 per share. Of the shares issued, 24.4 million were sold directly by the company, and 13.2 million were sold by existing shareholders—Alliance Laundry will not receive any fundraising from the shares sold by existing shareholders.
After trading began, Alliance Laundry's stock price reached a high of $25.24, rising 14% at one point, calculating the company's market value to exceed $4.5 billion, slightly higher than the market value level of industry competitor Whirlpool (WHR.US).
Alliance Laundry Holdings is a global leader in the production of commercial washing machines and dryers, headquartered in Ripon, Wisconsin, USA. The company has secured new investors—Capital International Investors and Kayne Anderson Rudnick—who have committed to purchasing a total of $200 million worth of stock in this offering.
Alliance Laundry primarily designs and manufactures commercial laundry systems, which are widely used in medical facilities, hotels, self-service laundries, fire stations, and other institutional locations. In its filings with the U.S. Securities and Exchange Commission (SEC), the company disclosed that it holds approximately 40% market share in the North American commercial laundry market, while also maintaining a stable position in other international markets.
For the 12 months ending June 30, Alliance Laundry achieved revenue of $1.6 billion, with a net profit of $79 million during the same period. The company emphasized in its SEC filings that since 2010, its revenue compound annual growth rate has been approximately 9.5%, with an adjusted EBITDA margin consistently maintained at around 25%.
Major companies that compete to varying degrees with Alliance Laundry in the industry include: Whirlpool, Samsung (SSNLF.US), LG Electronics, Electrolux AB, Maytag (a subsidiary of Whirlpool), Kenmore, and General Electric (GE.US).
Bank of America Securities, JP Morgan, Morgan Stanley, Baird, BDT & MSD, Montreal Bank Capital Markets, Citigroup, Goldman Sachs, and UBS Investment Bank jointly serve as the co-book managers for this offering
