October 31, 2007 / 6:15 PM / 12 years ago

UPDATE 2-EnergySolutions sees IPO at $19-$21/depositary share

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Oct 31 (Reuters) - EnergySolutions Inc, a provider of services to nuclear plants, on Wednesday said its initial public offering of 30 million depositary shares is expected to be priced at $19 to $21 each and sees proceeds of $213 million from its share.

In an amended filing with the U.S Securities and Exchange Commission, the company said it plans to sell about 11.9 million shares while its stockholder, ENV Holdings LLC, will offer about 18.2 million shares.

Each depositary share represents a fraction of a share sold by the company and a fraction of a share sold by ENV Holdings. This is being done to enable ENV to get preferred income tax treatment for the reorganization, the company said.

After the offering, ENV will own about 65.5 percent of the company’s outstanding stock, assuming no exercise of the over-allotment option. ENV expects proceeds of $341.2 million.

Assuming 87 million shares outstanding after the offering, and the mid-point of the estimated price range, the company’s initial market capitalization would be about $1.74 billion.

The Salt Lake City, Utah-based company said its depositary shares and common stock have been approved for listing on the New York Stock Exchange under the symbol “ES.”

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities and Morgan Stanley & Co are acting as representative for the underwriters. The underwriters have an over-allotment option of 4.5 million.

EnergySolutions’ services include engineering, operation of nuclear reactors, in-plant support services, spent fuel management and decontamination and decommissioning.

For the three months ended Sept. 30, the company expects income from operations of $24 million to $29 million and revenue of $380 million to $395 million.


The company, which is pinning hopes on significant upcoming federal contracts, said about $54.7 billion worth of contracts, including managing and supporting clean-up efforts, are expected to be awarded through 2010.

The head of the U.S. Nuclear Regulatory Commission, Dale Klein, said on Tuesday the “nuclear renaissance” had begun in the country that derives about 20 percent of its electricity from nuclear generation. More than a dozen applications to build new nuclear units are expected to be filed with the government regulators by the end of 2008.

No new nuclear plants have been built in the United States in the past three decades, but a growing need for power generation and rising concerns about carbon dioxide emissions from fossil fuel plants have renewed interest in the technology.

Apart from government agencies, EnergySolutions’ customers include Constellation Energy Group Inc CEG.N, Duke Energy Corp (DUK.N), Entergy Corp (ETR.N), Exelon Corp (EXC.N) and Florida Power & Light Co. (Reporting by Sayantani Ghosh in Bangalore)

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