GrafTech International, a producer of graphite electrode products, recently announced that is will offer 37.8 million shares in its initial public offering to raise more than $800 million in capital and become listed in the New York Stock Exchange under the symbol EAF. The price is gauged at $21-24/share. Toronto-based Brookfield Business Partners acquired GrafTech in 2015 for $855 million.
The firm has also opened the possibility that it might restart its Pennsylvania manufacturing facility.
According to statements by Brookfield Business Partners in February 2018, the price of its products averaged approximately $4,500/mt from 2006-2016 and are now at a weighted average price of $9,700/mt in contracts.
The company is presently valued at between $8-10 billion, a multiple of 8-10 times earnings before interest, taxes, depreciation and amortization (EBITDA). According to regulatory filings, GrafTech reached $96 million in 2017 EBITDA and is slated to achieve $275 million EBITDA in the first quarter 2018 and up to $1 billion in the full year due to higher prices and operational improvements.