19.02.2007

RSC to float

RSC Holdings the ultimate owner of Rental Service Corporation, the second largest rental company in the USA with 450 locations and over 5,000 employees has filed a registration statement form S-1 with the Securities and Exchange Commission concerning an Initial Public Offering of its common stock.

The number of shares to be offered and the price range for the offering have not yet been determined.

Deutsche Bank, Morgan Stanley and Lehman Brothers will manage the offering.

Atlas Copco sold 85.5 percent of RSC to Ripplewood Holdings and Oak Hill Capital Management in October last year for $3.8 million.

Vertikal Comment

Having loaded the business with a good deal of debt, it is most likely that the two private equity companies are looking to turn a profit on their investment while the North American rental market remains strong.

With the housing market faltering and several signs of the construction and equipment market slowing a little, they might well be concerned that to long a wait will leave them saddled with a cyclical business during a period of slow growth, while interest rates remain relatively high.

The filing of these papers does not mean that the IPO will definitely go ahead, but it will pave the way for the shareholders to push the button and move ahead quickly once the registration is complete.