Fortress Transportation and Infrastructure Investors plans up to $100M IPO

By Nicel Jane Avellana

Jan 03, 2014 10:19 PM EST

Citing a filing submitted to US regulators, Fortress Transportation and Infrastructure Investors Ltd will be raising up to $100 million in its initial public offering of common stock, Reuters reported. Fortress Transportation, which owns and acquires globally-operated infrastructure assets related to transportation is managed by Fortress Investment Group, an asset manager. Information from its website showed that Fortress Investment Group has $58 billion of assets under management as of September 30 last year. The asset manager gives institutional and private investors worldwide a range of alternative and traditional investment strategies. It was established in 1998.

Fortress Transportation focuses its investments in aviation, offshore energy and shipping containers. It is the owner of 16 commercial jet engines. As of September 30 last year, it had interests in around 180,000 maritime shipping containers, the report said.

The preliminary prospectus submitted on Friday, January 3 to the US Securities and Exchange Commission showed that the IPO will be underwritten by Barclays and Deutsche Bank Securities. The filing, however, did show the number of shares the firm intended to offer or the expected price range for those shares. The company plans to hold the debut of its common stock in the New York Stock Exchange.

The filing also showed that the funds that will be raised in the share sale will go towards purchasing new infrastructure assets. The company said it will also use the net proceeds for working capital purposes.

Net income of the New York-based Fortress Transportation increased to $14.2 million in the nine months that ended on September 30 from only $2.9 million. Revenues also went up to $12.1 million, representing an increase of over three times prior figures.

Reuters said that the amount of funds a firm says it intends to raise in its first IPO filing is only used for the calculation of registration fees. The final IPO size may not be the same.

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