- FGI Industries (NASDAQ:FGI) made an underwhelming market debut Tuesday, with the stock trading significantly below its initial public offering price, which was at the lower end of the company’s previously proposed range.
- Shares of the bath and kitchen fixtures supplier were trading at $3.98 at noon ET on Tuesday, down 34% from their IPO price of $6. The stock opened at $5 per share.
- FGI priced 2.5M units at the lower end of its proposed range of $6 to $8. Each unit consists of one share of ordinary stock plus one warrant to purchase one share at the IPO price.
- The deal included a 45-day option for underwriters to purchase up to 375k additional shares and/or warrants. The IPO was expected to generate gross proceeds of approximately $15M.
- FGI is a supplier of kitchen and bathroom products and fixtures, a majority of which are sold under private-label brands such as Home Depot’s Glacier Bay and Ferguson’s Pro-Flo. FGI’s products are also available through retailers such as Lowe’s and sold under brand names including Foremost, avenue, Jetcoat and Covered Bridge Cabinetry.
- On Jan. 14, FGI said in an amended S-1 filing that it hoped to sell 2.5M units at $6 to $8 per unit. The deal was expected to raise around $23M.