Belgian software and 3D printing provider Materialize announced its intention to launch a registered public offering of four million US Depository Shares (ADS).
Currently listed on NASDAQ under the ticker symbol “MTLS”, Materialize offers ADSs via an effective in-store registration statement on Form F-3 that the company previously filed with the United States Securities Commission (SECOND).
Each ADS will represent one common share, and the underwriters of the transaction, JP Morgan Securities, will be granted a 30-day option to purchase an additional 600,000 ADS.
As Materialize has just set out its intention for the public offering at this stage, there is no information yet available on when, or even if, the offer should be made, nor on the size or conditions of the offer. the offer.
Why publicly offer shares?
A direct public offering is when a company offers its securities directly to the public in order to raise capital. Raising funds independently also allows the company to avoid restrictions on bank financing and venture capital, as the terms of the offer are only set by the issuing company.
American Depositary Receipts (ADRs) are issued by US banks or brokers in the form of equity securities created to simplify foreign investment for US investors. An ADR typically represents one or more shares of a foreign company held by that bank on the foreign company’s domestic stock market.
For clarity, ADRs allow foreign stocks to be traded on U.S. stock exchanges, while an ADS is the portion of actual U.S. dollar denominated shares of a foreign-based company available for purchase. on an American stock exchange. The whole issue is called ADR and the individual shares are called ADS – In the case of Materialize, each ADS represents one ordinary share.
A registered public offering is made in accordance with an effective pending registration statement on Form-F3 – a regulatory form for registering securities used by foreign private issuers – which is filed by the company with the SEC.
Materialize public offer conditions
As part of its public offering, Materialize is offering four million ADS, each representing one ordinary share with no par value. According to the company, the offer is subject to market conditions, and as such, there is currently no assurance as to when the offer can be made, or even the size or actual conditions of the offer.
JP Morgan is acting as sole representative of the underwriters of the offering and will also join the brokerage and investment firm Stifel, Nicolas & Company as co-managers of the transaction.
The offering will be made by way of a prospectus supplement and accompanying prospectus which will be filed with the SEC and will be available on the SEC’s website at a later date. When available, copies will also be available from JP Morgan and Stifel, Nicolaus & Company.
Following the release of its first quarter 2021 financial results in April, Materialize shares fell 6% after the company failed to report annual growth over the period. Revenue generated in the first quarter was down 1.6% from the same period last year, which was the last quarter of normal trading before the pandemic.
Following the publication of the results, Materialize’s shares fell from $ 32.87 to $ 30.88, potentially reflecting some unease among investors that the company has so far been unable to return. to pre-Covid income levels.
Public offers in the 3D printing sector
Materialize isn’t the only 3D printing company looking to raise capital through a registered public offering of ADS and ADR recently.
In January, the German manufacturer of 3D printers voxeljet announced that it had made deals with its investors for the purchase and sale of 621,170 of its shares in ADR form, valued at $ 10 million, and less than a month later, it agreed an additional registered direct offer of $ 12 million to continue to increase its capital.
Also in January this year, the Israeli manufacturer of 3D printed electronics Nano dimension announced the planned sale of shares valued at $ 332.5 million to investors via a registered direct offer, which is expected to bring the total cash raised by the company to $ 1 billion. The company raised $ 35.9 million in a previous direct stock offering last year, which it used for working capital and for general and operational purposes.
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Featured Image Shows Materialize recently launched its new Metal Competence Center in Bremen, Germany. Photo via Materialize.
