Source: Beast Finance Author: Beast Finance
Beast Finance learned that the Chilean-based precast concrete products company [PreTam Holdings] has recently submitted a prospectus to the US Securities and Exchange Commission (SEC), applying for an IPO listing on Nasdaq, with the stock code (PFAB), and PreTam Holdings plans to pass the IPO. The Nasdaq IPO raised $17 million in funds.
Company Business
PreTam Holdings, headquartered in Coquimbo, Chile, is a company that develops and manufactures a wide range of precast concrete products for road engineering, industrial construction, residential, special building systems and other industries.
The management of PreTam Holdings is headed by the founder, chairman and CEO, Mr. Luis Arrechea Miquelarena, who has been with the company since its inception in November 2018 and as managing partner of INMO ACIS sa, a Spanish construction and real estate development company people.
Management believes that the company is the leader in the Chilean precast concrete construction market, with an installed capacity of 3,500 cubic meters per month and average monthly sales of approximately $1 million.
In 2022, the company signed an agreement to supply precast concrete products to 12,000 homes, four strip retail centers and multiple recreational areas, and expects to begin receiving contract payments in the third quarter of 2023.
As of December 31, 2022, PreTam Holdings has received an equity investment of US$1.5 million from investors.
Industry Overview
According to a 2020 market research report by Allied Market Research, the size of the Chilean prefabricated building products market was valued at USD 323 million in 2019 and is expected to reach USD 492 million by 2027.
This implies a forecasted CAGR (Compound Annual Growth Rate) of 6.9% for this industry from 2020 to 2027.
The main driver of this projected growth is rising strong demand for new housing, given the severe shortage of residential units in Chile.
The main competitors of PreTam Holdings in this industry are:
(1) Ecomundo
(2) Hormipret
(3) Pacadar SAU
(4) Prefabrik Yapı A.Ş
(5) Prefast SpA
(6) Ramaq ChileRamaq (
7) Tecno Fast
(8) Tensacon
(9) Tensocret
(10) Vollert Anlagenbau GmbH
financial situation
According to the IPO prospectus, Boldbeast Finance sorts out the financial performance of PreTam Holdings as follows:
(1) Total income: The total income of PreTam Holdings as of December 31, 2021 and December 31, 2022 are: US$10,110,188 and US$8,469,066, respectively.
(2) Gross profit (loss): The gross profit of PreTam Holdings as of December 31, 2021 and as of December 31, 2022 are: US$4,326,133 and US$3,734,765, respectively.
(3) Gross profit margin: The gross profit margins of PreTam Holdings as of December 31, 2021 and as of December 31, 2022 are: 42.79% and 44.10%, respectively.
(4) Operating profit (loss): The operating profit of PreTam Holdings as of December 31, 2021 and as of December 31, 2022 are: US$1,912,844 and US$1,706,315, respectively.
(5) Net income (loss): The net income of PreTam Holdings as of December 31, 2021 and December 31, 2022 are: US$1,387,444 and US$1,946,980, respectively.
(6) Operating cash flow: The operating cash flow of PreTam Holdings as of December 31, 2021 and as of December 31, 2022 are: US$1,634,400 and US$321,086, respectively.
As of December 31, 2022, PreTam Holdings had $118,053 in cash and $11.6 million in total liabilities.
For the twelve months ended December 31, 2022, PreTam Holdings' free cash flow was $443,821.
US stock IPO details
PreTam Holdings plans to raise US$17 million through an IPO of Class A ordinary shares. Shareholders of Class A and Class B ordinary shares will each have one vote per share. Currently, there are no tradable shares of Class B shares.
The S&P 500 (SP500) no longer allows companies with multiple stock classes to be included in its index at this time.
Immediately after the IPO, the company will be considered a "holding company" by the three current major shareholders, Luis Arrechea, Oscar and José Cantero, according to Nasdaq's rules.
The company's equity compensation incentive plan currently provides that up to 1 million shares of common stock may be awarded. Before the IPO, the company's stock base was 5.35 million shares.
PreTam Holdings currently plans to pay no dividends and retain future earnings, if any, primarily for reinvestment back into the company's growth and working capital requirements.
Intermediary
Maxim Group, the sole underwriter for PreTam Holdings' Nasdaq IPO, has led six IPOs in the past 12 months that have generated a negative average return (25.0%) since the IPO, That was the lowest performance of any major underwriter for the period.