US: Hydrofarm files for a $100 million IPO

Hydrofarm Holdings Group, a hydroponics and specialty indoor gardening market supplier, filed on Thursday with the SEC to raise up to $100 million in an initial public offering.

The number of shares to be offered and the price range for the proposed offering have not yet been determined. Hydrofarm intends to list its common stock on the Nasdaq Global Market under the ticker symbol "HYFM".

Hydrofarm is one of the largest independent distributor of hydroponic equipment in North America. Their assortment includes high-intensity grow lights, climate control solutions, and growing media, as well as a broad portfolio of innovative and proprietary branded products with a great focus on the cannabis market. The company reaches commercial farmers and consumers through a network of over 2,000 wholesale customer accounts, connected primarily through its proprietary eCommerce marketplace. Over 80% of its net sales are generated from specialty hydroponic retailers, but it also distributes products to a diversified range of retailers including garden centers, hardware stores, eCommerce retailers, commercial greenhouse builders, and commercial resellers. 

The company believes that it sits at the intersection of two compelling market opportunities: the movement towards or achievement of cannabis legalization across North America, and a revolution in controlled environment agriculture. Since the US presidential election, cannabis stocks have risen.

J.P. Morgan and Stifel are acting as lead book-running managers for the offering. Deutsche Bank Securities, Truist Securities and William Blair are acting as book-running managers for the offering.

The Petaluma, CA-based company was founded in 1977 and booked $309 million in sales for the 12 months ended September 30, 2020. It plans to list on the Nasdaq under the symbol HYFM. Hydrofarm Holdings Group filed confidentially on July 17, 2019. J.P. Morgan, Stifel, Deutsche Bank, Truist Securities and William Blair are the joint bookrunners on the deal. No pricing terms were disclosed.

Read more at Nasdaq.com


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