OTG EXP Incorporated (NASDAQ: OTG) expects to raise $584 million in its upcoming IPO. Based in New York, New York, OTG EXP operates food and beverage facilities within airports in North America.
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This week OTG will offer 32.5 million shares at an expected price range of $16 to $18. OTG filed for the IPO on January 7, 2016.
Lead Underwriters: credit Suisse Securities and Morgan Stanley
Underwriters: Barclays Capital, BMO Capital Markets, Fifth Third Securities, KeyBanc Capital Markets, Maxim Group, and Regions Securities
Business Summary: Operator of Food and Beverage Facilities in Airports
OTG EXP operates food and beverage facilities in airports across North America. The company has approximately 220 locations in 23 terminals in 10 airports. OTG EXP serves individuals, crewmembers, employees and airport partners, as well as airport operators, airlines, concession program managers and other commercial operations.
The company's current target market is the top 30 airports in North America by passenger and cargo data. These airports account for 576 enplanements and $5.2 billion in sales from news and gift concession retailers.
OTG has operations in the highest traveled airports including Kennedy, Newark, LaGuardia, Reagan, Philadelphia, Toronto-Pearson, and Minneapolis-St. Paul. During fiscal years 2012 to 2014, OTG grew from 111 food and beverage sites in eight airports to more than 220 sites in 10 airports. During that same time period, net sales grew from $146 million to $274 million, for a CAGR of 23 percent.
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OTG EXP integrates four primary goals into its business model including:
