Lyntris Raises About $298 Million in Downsized US IPO
Synopsis
Defense contractor Lyntris and existing shareholders raised $297.5 million in its US IPO, with 17 million shares priced at $17.50 each, below the initial $19 to $22 range.
Key Highlights
- Lyntris and its existing shareholders raised $297.5 million through the IPO.
- The company priced 17 million shares at $17.50 each, below its original $19 to $22 price range.
- Lyntris develops battlefield sensors and software for the US and its allies.
- The company reported a $13 million net loss on $241 million in revenue for the six months ended June 30.
Lyntris Prices IPO Below Initial Range
Lyntris raised $297.5 million in a smaller-than-expected US initial public offering, with some of the proceeds going to existing shareholders. The Falls Church, Virginia-based defence contractor priced 17 million shares at $17.50 each, below its earlier range of $19 to $22.
The company and its shareholders had originally planned to offer 24 million shares. Lyntris sold around 5.7 million shares, compared with its initial plan for roughly 4.9 million. Existing shareholders cut their portion of the offering by more than 7.8 million shares.
Defense Contractors Turn to US Markets
Lyntris is the latest defence company to list in New York as firms look to take advantage of increased demand connected to the Iran war.
The company develops battlefield sensors and software for the US and its allies. It currently supports more than 200 active defence programmes, with no individual programme contributing more than 7% of its revenue.
Debt and Financial Results
As of June 30, Lyntris had $272 million in long-term debt. Investors will likely be watching whether the company can bring down its debt while continuing to grow revenue from its core products.
For the six months ended June 30, Lyntris reported a net loss of $13 million on revenue of $241 million. During the same period a year earlier, the company recorded a $9.7 million net loss on revenue of $179.1 million.
Lyntris to Start Trading on NYSE
Several companies have scaled back their IPOs this year as investors remain cautious about valuations.
Evercore ISI, Citigroup and Guggenheim Securities served as the lead book-running managers for the offering. Lyntris will begin trading on the New York Stock Exchange under the ticker “LYNX” on Wednesday.
Source: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
You Might Also Like
Meghana Pandit: Breaking Barriers in Healthcare Leadership
Coca-Cola’s Marketing Masterclass: Strategies That Built an Icon
