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Cardinal Infrastructure Group indicated earlier this week that it planned to secure a valuation exceeding USD 805 million through its forthcoming US IPO, marking one of the final major listings in the year-end window. The offering, which follows a revived US IPO market despite recent political gridlock in Washington, is set to raise as much as USD 253 million. The company expects renewed market confidence-driven by rising equities and easing interest rates-to support investor demand. Its prospectus reflected strong backing from residential builders, who accounted for nearly 71% of its revenue over the past year.
Cardinal Infrastructure Group stated earlier this week that it was seeking a valuation surpassing USD 805 million through its planned US initial public offering, as firms attempted to take advantage of the final listing window before the close of the year. The move came at a time when US IPO activity had regained momentum following tariff-related shocks, marking the busiest autumn period in four years. However, the prolonged partisan stalemate in Washington had recently slowed the Securities and Exchange Commission's capacity to process submissions. Advertisement
Following the reopening of the US government, the pace of new filings was expected to continue, supported by strong equity markets and easing interest rates, prompting more executives to consider public listings. Cardinal aimed to raise up to USD 253 million by issuing 11.5 million shares priced between USD 20 and USD 22 each. The float was anticipated to act as an indicator of investor sentiment towards a sector widely regarded as crucial to national economic expansion.
The company's business has been buoyed by sustained spending in AI-linked infrastructure and persistent fiscal deficits, which have underpinned commercial and industrial construction. In contrast, the US housing market continued to struggle with significant supply constraints, influenced by higher mortgage rates and regulatory pressures.
Cardinal owns and operates a significant fleet of specialised labour and equipment, enabling it to manage utility installations and provide essential construction services across residential, commercial and government-led developments. As set out in its prospectus, nearly 71% of its revenue over the twelve months ending past September had been generated by residential builders.
Stifel and William Blair were identified as the lead underwriters for the offering. The company planned to list on the Nasdaq under the ticker symbol CDNL, continuing the broader trend of construction and infrastructure-linked firms seeking public market entry during the improved economic outlook.
Source - Reuters
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