On June 29, 2015, NEP Group, Inc. filed documents with the Securities and Exchange Commission (SEC) in preparation for its upcoming initial public offering (IPO). The company plans to begin trading on July 31, 2015. Here’s what investors need to know about the NEP Group IPO.
Who is NEP Group, Inc.?
NEP Group, Inc. is a Pittsburgh-based company that sells to network television broadcasters and event producers. They handle the outsourced production of a variety of sports, entertainment, and broadcast programs.
What is NEP’s Business Model?
The company’s proposition to clients is simple: you provide the talent, and we’ll handle the rest. With over 800 engineers on staff and operations spanning 65 countries, NEP offers the technical expertise for designing and executing a broadcast show or event.
NEP provides the supporting infrastructure for full audio and video capture, including 46 studios and 118 mobile production units. Their sports clients include the NFL, MLB, NHL, NBA, and the Olympic Games. On the entertainment side, NEP helps produce late-night television, awards shows, concert tours and music festivals. (Source: NEP Group Form S-1/A, July 30, 2015.)
What is NEP’s Revenue?
Despite a 24% bump in revenue between 2013 and 2014, NEP continues to make heavy losses. The company lost $41.2 million last year and the firm’s assets barely cover its liabilities.
What is NEP’s IPO Price?
The stock is expected to premiere between $15.00 and $17.00. Using the midpoint value, NEP could raise $190.5 million, pushing the company’s market capitalization to $603 million.
What is NEP’s Stock Symbol?
NEP plans to be listed on the NASDAQ stock exchange under the ticker symbol “NEPG.”
How will NEP Use the Money?
Paying down its significant debt load would be a primary concern for NEP executives. The firm disclosed that $69.0 million would go towards its short-term liabilities, with another $85.9 million dedicated to reducing its longer-term loans.