Voxeljet (VJET), a 3D printer manufacturing firm based in Friedberg, Germany, plans to raise $91 million in its upcoming IPO. The firm plans to offer 6.5 million shares, 14% of which are insider shares, at an expected price range of $13.00-15.00. At the midpoint of the expected range at $14.00 per share, VJET would command a market value of $309 million.
VJET filed confidentially on September 17, 2013
Joint Bookrunners: Piper Jaffray, Citi
Co-Managers: Cowen & Co, Stephens Inc.
VJET is a maker of high-speed, large format 3D printers and a provider of on-demand parts services for customers serving the automotive, aerospace, film and entertainment, art and architecture, engineering and consumer product end markets. The firm divides its business into two segments: Systems, which focuses on the development and manufacture of 3D printers, and Services, which prints on-demand parts for customers. The firm currently offers five different models of printer in varying sizes, with plans to add a sixth by the end of 2013.
The current lineup of printers is capable of volumetric outputs between 0.7 and 123.0 liters per hour. VJET has sought to gain a competitive advantage through manufacturing significantly larger printers than its competitors; the VX4000 system offers a volume over six times larger than the next-largest commercially available 3D printer, while the VX800 system offer a conveyor system that allows for uninterrupted production of parts that exceed the size of the printer in one dimension.
VJET offers the following figures in its F-1 balance sheet for the six months ending June 30, 2013:
Total Assets: $17,073,000
Total Liabilities: $15,987,000
Shareholders' Equity: $1,095,000
VJET has seen skyrocketing revenues over the past few years, with a CAGR of 35% between 2010 and 2012.
There's little doubt that 3D printing will be an expanding element of manufacturing for the foreseeable future, especially in the electronics sector, so VJET should have significant growth opportunities moving forward - its impressive CAGR suggests that it already is taking advantage of those opportunities. Its losses for the beginning of this year are concerning, but the firm has already shown itself capable of attaining profits and posted a positive EBITDA for the same period.
We are cautiously optimistic on this stock and we rate it a buy in the price range of $13 to $15 or slightly higher. We would have liked to see a stronger group of lead underwriters for this technology IPO from Germany.
Numerous other firms are engaged in the development and sale of 3D printers. There is significant diversity in the 3D printer market because some types of 3D printer technologies are more appropriate to specific tasks; some of these technologies include fused deposition modeling, powder binding, inkjet, selective laser sintering, and stereolithography.
Customers will typically select printers based on the technology most relevant to their needs, generating fierce competition among 3D printer manufacturers to position themselves to capture multiple market elements. Some of VJET's key competitors include ExOne (XONE), 3D Systems Corporation (DDD), Stratasys Ltd (SSYS), and EOS GmbH.
VJET's senior management consists of a three-man supervisory board. The board is currently chaired by Peter Nietzer, who has previously owned and directed private investment and private equity firms. Mr. Nietzer is joined by Dr. Stefan Sohn and Dr. Hoachim Heinzl to complete the board. Dr. Sohn's background is in the automotive industry, while Dr. Heinzl is Professor Emeritus at the Technical University of Munich; he had been Chair for Precision Engineering and Micro Technology between 1978 and 2005, and has focused much of his research on 3D printing and related technologies.
Additional disclosure: This article is neither a recommendation to buy or sell shares, and investors should always do their own research and read the F-1 and discuss it with their financial adviser.