Simulation Sciences Plans IPO to Sell 35% of Its Shares
Simulation Sciences Inc., a provider of simulation software to industrial companies, said it plans to sell 35% of its stock through an initial public offering.
The company plans to sell 2.7 million shares at $8 to $10 each, according to a statement filed Thursday with the Securities and Exchange Commission. The offering would generate $21.6 million after expenses if the stock sells for $9 a share. Existing investors will offer another 745,000 shares, raising the total size of the offering to 3.45 million.
The 29-year-old company would use the proceeds from the stock offering for working capital, possible acquisitions and general corporate purposes, including investments in product development and marketing efforts. Simulation Sciences designs commercial simulation software and related services to the petroleum, petrochemical and industrial chemicals process industries, as well as to engineering and construction firms that support those industries. The company earned $810,000 in the fiscal year ended June 30 on revenue of $15.2 million.
Alex. Brown & Sons Inc. and Wessels, Arnold & Henderson will underwrite the stock sale for Simulation Sciences, which plans to have its shares trade on the Nasdaq Stock Market under the symbol SMCI. The company will have 9.81 million shares outstanding after the offering.