Chicago, Ill (BRAIN)—SRAM International Corporation could raise up to $300 million in an initial public offering, according to a preliminary prospectus filed today with the Securities and Exchange.
The number of shares to be offered and the price range for the offering have not yet been determined. The company also hasn't decided whether it would list on the Nasdaq or the New York Stock Exchange, but said the ticker symbol would be "SRAM."
Company executives are not commenting on the move to go public until the IPO is issued. The prospectus indicates the money acquired in the IPO would be used to repay the company after it issues new debt to acquire the equity assets held by Trilantic Partners.
Formerly known as Lehman Brothers Merchant Bank, the buyout arm of Lehman Brothers, Trilantic invested $234.8 million in SRAM in a deal that closed Sept. 30, 2008.
J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley will be acting as joint book-running managers for the offering. Baird, Lazard Capital Markets, Piper Jaffray and Stifel Nicolaus Weisel will be acting as co-managers.
A new company, SRAM International Corporation, was incorporated on April 29, 2011 for the purpose of becoming a holding company with a 100 percent ownership interest in SRAM, LLC.
SRAM reported net sales of $524.1 million in 2010, and has grown at a rate of about 16 percent annually in the past four years. The company estimates it holds about 15 percent of the $3.5 billion bicycle components market.