21.12.2004

Manitowoc share offer oversubscribed

Manitowoc closed out its offer to sell 2,650,000 shares earlier this month and as a result of an over allotment has now released a further 397,500 shares as allowed for under the terms of the offer. The main sale raised $90.5 million after costs, while the additional shares will net a further £13.7 million yielding the company a grand total of $104.2 million.

$67.7 million of the proceeds will be used to buy out a third of a 10.5 percent, 10 year subordinated note that matures in 2012, while the 36.5 million balance will go into the company’s cash flow. The net effect of this sale is to increase the number of shares outstanding by 10.5 percent.

Manitowoc shares are currently trading at over $38 a share, up over five percent on the offer price of $36.25. So far this year the shares have been a great investment rising from a 12 month low of $27.59 a share to a high of over $39. With the exception of the North American crawler crane business and the continuing threat of steel prices remaining high, 2005 looks as though it will be a good year for the company. On the crane side Potain leads the very profitable tower crane sector while Grove appear to have hit the right note with its new GMK 5130 All Terrain mobile crane building on the success of the GMK 3055.