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Monocle seeks USD 150mn IPO
Posted on Wednesday, 06 February 2019 15:41
Blank check vehicle Monocle Acquisition is holding an initial public offering (IPO) on Nasdaq worth as much as USD 150.00 million to fund a business combination within the aerospace and defence, industrial, or technology and telecommunications industries.
Cowen and Chardan are joint bookrunning managers on the potential upcoming listing comprising 15.00 million units at USD 11.50 apiece and an overallotment option for an additional 2.25 million securities.
According to the preliminary prospectus, the aerospace sector’s growth over the past decade has been driven by a substantial increase in commercial aircraft deliveries and backlog levels for major original equipment manufacturers (OEMs).
In addition, it has benefitted from passenger demand, as demonstrated by the compound annual growth rate of global revenue passenger kilometres (RPKs) rising by 6.4 per cent between 2010 to 2017.
Current commercial aircraft backlogs for Airbus and Boeing are at decade-high levels of 13,309, combined, and the latter has said the aerospace sector would deliver 42,000 commercial aircraft with a market value of USD 6,300 billion over the next 20 years.
However, Monocle is not focusing purely on this industry, but also on defence, industrial and technology and telecommunications businesses in North America implementing advanced IT and data analytics capabilities in their operations.
The group will target those that are market leaders, have high barriers to entry and defensible positions within their sectors, have the ability to endure economic downturns and have attractive financial metrics.
It noted: “We will seek to acquire a company that we believe could provide a platform for add-on acquisitions or businesses that are at an inflection point.”
These targets will have earnings before interest, tax, depreciation and amortisation of USD 50.00 million or more annual and an enterprise value of USD 500.00 million to USD 1.50 billion.
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