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The Mayville Engineering IPO: What You Need To Know

Elizabeth Balboa

This week, the markets will support a U.S. parts producer that supports global vehicle producers that support the construction and agriculture producers worldwide. Here are the details to get in on that supply chain.

The IPO

Mayville Engineering Company, Inc. will issue 6.25 million shares on the New York Stock Exchange under ticker MEC, according to the firm’s S-1 filing. Priced between $19 and $21, the offering represents 31.7 percent of outstanding shares and is expected to bring in about $150.9 million.

Lead underwriters include Baird, Citigroup and Jefferies.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

The Company

Since 1945, the Tier 1 equipment supplier has provided fabrication, prototyping, tube bending and forming, and coating services to industrial firms.

Its parts end up in agricultural, military powersports, construction and commercial vehicles — including those of Deere & Company (NYSE: DE) and Volvo. Last year, Deere accounted for 23 percent of net sales, and the top 10 customers represented 81 percent.

With 21 production facilities, Mayville is more than twice the size of its biggest competitor.

The Finances

In 2018, Mayville recorded $354.5 million in revenue contributing to $17.94 million in net income. The previous year saw $5.25 million in income from $313.3 million in revenue.

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