NEW YORK --Titan Machinery Inc., which operates agricultural and construction equipment stores, said Thursday it plans an initial public offering of 5.3 million shares, according to a filing with the Securities and Exchange Commission.
The Fargo, N.D.-based company, which filed a preliminary prospectus with the SEC in August but did not disclose any terms, expects the offering to price between $7.50 and $9.50 per share. Titan has also granted the underwriters the option to buy up to 795,000 additional shares to cover any overallotments.
Assuming an offering price of $8.50 per share, the company expects proceeds of about $29 million, or $36 million if the underwriters exercise their overallotment option in full.
Titan plans to use the IPO proceeds to fund future acquisitions of dealerships, for working capital and general corporate purposes, to pay accrued cash dividends and to repay outstanding debt.
Titan owns and operates a network of 34 full-service agricultural and construction equipment stores and two outlet stores in the upper Midwest. The company sells equipment for both large-scale farming and home and garden use. It also sells heavy construction and light industrial machinery for commercial and residential construction, road and highway construction and mining applications.
Titan is an authorized dealer of Amsterdam, Netherlands-based CNH Global NV agricultural and construction equipment and parts. In fiscal 2007, CNH supplied about 77 percent of the new equipment sold by Titan and represented a significant portion of the company's parts revenue.
For the six months ended July 31, Titan increased its earnings to $2.2 million, from $1.4 million in the year-ago period. The company increased its revenue to $165.6 million from $129.5 million in the same period in 2006.
Craig-Hallum Capital Group and Robert W. Baird & Co. are underwriting the offering.
The company has applied to list its shares on the Nasdaq Global Market under the symbol "TITN."
