Loop Energy Inc. has filed a preliminary prospectus for a proposed initial public offering (IPO) of its common shares for gross proceeds of $100 million.
With the terms of the offering yet to be determined, Loop Energy proposes to issue between 6,250,000 and 8,333,333 common shares priced at between $12.00 and $16.00 per share for gross proceeds of $100 million. If the over-allotment option is exercised in full, based on the estimated price range, Loop Energy will issue an additional 937,500 and 1,250,000 shares.
Loop Energy has applied to list its common shares on the Toronto Stock Exchange (TSX) under the symbol “LPEN.”
Burnaby, BC based Loop is a leading designer of PEM fuel cell systems targeted for the electrification of commercial vehicles. It sells and services two categories of products: fuel cell stacks and fuel cell modules, which are intended to serve a variety of commercial applications including light commercial vehicles, transit buses, medium and heavy duty trucks, marine, train, mining trucks, material handling vehicles and stationary power.
Upon completion of pre-closing reorganization and the closing option grant, Loop Energy will have 27,327,950 common shares and 2,693,325 option outstanding, valuing the company at a pre-IPO value of between $360 million to $480 million on a fully-diluted basis.
Cummins Inc. (NYSE: CMI) through its strategic investments in 2019 and 2020 holds approximately 23% stake in Loop Energy on a fully-diluted basis. Its stake worth up to $111 million at a cost of $15 million. Cummins is the single largest shareholder and the only shareholder controlling over 10% stake in the company.