SodaStream files for Nasdaq IPO

The home soda company wants to raise $95 million at a company value of $336 million.

Home soda company Sodastream International Ltd. (formerly Soda Club) has filed a registration statement with the US Securities and Exchange Commission (SEC) for an IPO on Nasdaq. The share will be traded under the ticker "SODA".

Airport City-based SodaStream manufactures home beverage carbonation systems, which enable consumers to easily transform ordinary tap water instantly into carbonated soft drinks and sparkling water. The company is controlled by Fortissimo Capital.

Sodastream plans to hold the IPO at a company value of $336 million, after money, based on the mid-point of the offering price. The company plans to offer shares at $18-20 per share, raising a gross $85-95 million, which could rise to $108 million if the underwriters exercise their overallotment options.

The company has $5.7 million in cash. It plans to use $33 million of the proceeds to cover debts to financial institutions and $34 million to buy and build a factory.

Fortissimo Capital, which acquired its stake in SodaStream in 2007, will make a $2.4 million for terminating its management services for the company. SodaStream may also use part of the proceeds from the offering to acquire or invest in companies, products, and technologies, although it stated in the prospectus that no such possibilities were presently on the agenda.

Six underwriters are involved in the IPO. JP Morgan Securities LLC and Deutsche Bank Securities Inc. are the joint bookrunning managers. William Blair & Company LLC, Oppenheimer & Co., Stifel Nicolaus Corporation (NYSE: SF), and Roth Capital Partners will assist. The underwriters have an overallotment option to buy 710,526 shares, in addition to the 4,736,842 shares that Sodastream will offer.

Sodastream had $93.4 million revenue in the first half of 2010, compared with $142.8 million in 2009 as a whole. Most sales are in Europe, and the company publishes it financial reports in euros, which are converted into dollars. Net profit was $5.7 million in the first half of 2010, compared with $9.7 million in 2009 as a whole.

Published by Globes [online], Israel business news - www.globes-online.com - on October 19, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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