Gates Industrial to Raise $15 Million Through Secondary Offering of Ordinary Shares

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Gates Industrial ($NYSE:GTES) Corporation, a leading global manufacturer of industrial and automotive products, has announced a secondary offering of 15 million ordinary shares for $15 million. This comes as the company looks to raise additional funds to support its strategic growth initiatives. GATES INDUSTRIAL Corporation is a leading global manufacturer and marketer of industrial and automotive products, providing power transmission and fluid power solutions worldwide.

The company has a long history of growth, innovation, and success in its core markets, and their products are widely recognized for their quality and performance. With the additional funds generated through this secondary offering of ordinary shares, Gates Industrial hopes to invest further in their operational capabilities and expand into new markets.

Stock Price

The stock opened at $12.2 and closed at $12.2, up by 0.6% from the previous closing price of 12.2. The proceeds of the offering will be used for general corporate purposes, including replenishing working capital or supporting potential acquisitions. The company has not yet disclosed the number of shares to be sold.

In relation to the offering, the company has also entered into agreements with two joint book-running managers, KeyBanc Capital Markets and Truist Securities. The offering is being made through a prospectus supplement filed under the company’s effective shelf registration statement, which was previously filed with the Securities and Exchange Commission. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Gates Industrial. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Gates Industrial. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Gates Industrial. More…

Key Ratios Snapshot

Some of the financial key ratios for Gates Industrial are shown below. More…

Analysis

GoodWhale recently conducted an extensive analysis of GATES INDUSTRIAL‘s wellbeing. Our findings indicate that GATES INDUSTRIAL has a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable of sustaining future operations in times of crisis. Additionally, GATES INDUSTRIAL is strong in medium assets, growth, profitability, and weak in dividend. Based on this assessment, we classify GATES INDUSTRIAL as a ‘gorilla’, a company that achieved stable and high revenue or earning growth due to its strong competitive advantage. Given these strengths, we believe GATES INDUSTRIAL will be particularly attractive to long-term investors looking for a company that can provide reliable returns over the long term. Moreover, since GATES INDUSTRIAL has a strong competitive advantage, active investors may find value in investing in the company to achieve short-term gains. More…

Peers

In the industrial sector, there is intense competition between Gates Industrial Corp PLC and its competitors Trelleborg AB, Graco Inc, and Vishal Bearings Ltd. All four companies are vying for market share in the production of industrial equipment and components. While each company has its own strengths and weaknesses, Gates Industrial Corp PLC has emerged as a leader in the industry due to its innovative products, efficient manufacturing, and strong marketing and sales strategies.

– Trelleborg AB ($OTCPK:TBABF)

Trelleborg AB is a Swedish industrial group that develops, manufactures, and sells products and services for a wide range of industries worldwide. The company operates through four business areas: Trelleborg Coated Systems, Trelleborg Industrial Solutions, Trelleborg Offshore & Construction, and Trelleborg Sealing Solutions. Trelleborg Coated Systems develops, manufactures, and markets polymer-coated fabrics and films. Trelleborg Industrial Solutions develop and market products and solutions within the areas of polymer technology, vibration isolation, and seals. Trelleborg Offshore & Construction develops and markets products and solutions for the oil and gas industry, the fishing industry, and the construction industry. Trelleborg Sealing Solutions develops and markets sealing solutions for a wide range of industries and applications.

– Graco Inc ($NYSE:GGG)

Graco Inc. is a publicly traded company with a market capitalization of $11.77 billion as of 2022. The company has a return on equity of 19.47%. Graco Inc. manufactures and markets equipment and systems for the management of fluids in industrial, commercial, and consumer applications worldwide. The company operates in three segments: Industrial, Contractor, and Homeowner.

– Vishal Bearings Ltd ($BSE:539398)

Vishal Bearings Ltd is an Indian company that manufactures and supplies a range of bearings and related products. The company has a market cap of 756.45M as of 2022 and a return on equity of 27.82%. Vishal Bearings Ltd is a publicly traded company listed on the Bombay Stock Exchange. The company’s products are used in a variety of industries including automotive, construction, and mining.

Summary

Gates Industrial Corporation plc, a global manufacturer and distributor of industrial and automotive products, announced a secondary offering of 15 million ordinary shares. This offering is available for purchase via an underwritten public offering. This expected capital infusion is likely to be used for general corporate purposes such as working capital, acquisitions, and capital investments, aiding in the growth of the company. Overall, this secondary offering is likely to be viewed positively by the market, given the increased liquidity and potential for further expansion and growth.