Dive Brief:
- In the first public offering from a U.S. trucking company since 2010, Schneider National raised $550 million on 29 million shares of company stock, Market Watch reported.
- From its founding in 1935, the company has been run by only three chief executives. The company appealed to investors with its years of growth and reliability, coupled with recent innovation investments.
- The nation's foremost and largest privately held trucking company sold 28,947,000 shares of Class B common stock. Schneider intends to continue its long-time commitment to its base in Wisconsin and to pay down debt, plus potentially make acquisitions with its earnings.
Dive Insight:
Fulfilling its 2016 promise, Schneider National's IPO will likely enable the top rated trucking company to continue its expansion efforts in a soft trucking market. In June 2016, the company acquired Watkins & Shepard and Lodeso, two last-mile delivery experts, rounding out Schneider's long haul to final mile capabilities.
Schneider's decision to go public took the company down a rigorous path of approval. To succeed, extensive disclosures and regulations had to be met before a company could offer shares for sale, including future business prospects. Fortunately for Schneider, according to a recent report from research firm FTR Transportation Intelligence, orders for Class 8 tractors — which, according to Schneider's S-1 comprises the majority of the company's fleet — has been on the rise since November. February orders of Class 8 increased 5% MOM and 22% YOY, according to FTR.
Ultimately, Schneider's strong business model and growth prospects made it a viable IPO candidate. Its portfolio includes Regional, Long-Haul, Expedited, Dedicated, Final Mile, Bulk, Intermodal, Brokerage, Cross-Dock Logistics, and Supply Chain Management and Port Logistics. Prior to the stock offering, the company was valued at $4 billion.
