What is the business of Energy Recovery Company?
The Energy Recovery company is in the business of desalination equipment supply.
Desalination is the process that converts sea water or brackish water to fresh by removing excess salt and other minerals. There are two main types of desalination: thermal, which uses heat in the conversion process, and reverse osmosis, which uses very high pressure to push water through a filtering membrane.
ERI focuses on the seawater reverse osmosis, or SWRO, segment. That method is growing faster than the overall desalination market in part because of better membranes and in part because desalination facilities are using energy recovery devices that increase efficiency.
How much capital can be raised through the Energy Recovery IPO?
The company plans to raise approximately 175 million dollars through the Initial Public offer.
Where will the capital raised or IPO proceeds be used?
The capital raised by Energy Recovery IPO will be used to expand its business in a fast-growing segment of the global water desalination industry.
What are the business prospects of Energy Recovery IPO?
As per the news on BizJournals, A variety of factors are driving worldwide demand for fresh water, such as population growth, a shift in population centers, water scarcity and climate change. According to United Nations estimates, the world's population will grow to 8 billion by 2025, up from 6.6 billion today. That means more stress on the world's fresh water supplies.
Will it be a nice investment to apply for Energy Recovery IPO?
The company is banking on its cost efficient, energy saving and highly efficient processes which aim to fulfill the business of basic necessities of life. As per the experts, it makes sense to apply for the Energy Recovery IPO, as the demand is increasing for the evr growing population.
What are the business valuations of Energy Recovery IPO?
ERI equipment is in plants in China, Algeria, Australia and India, which according to U.K. publication Global Water Intelligence are markets that are expected to grow at least 20 percent a year between 2005 and 2015. ERI also operates in the Middle East, North America, the Caribbean and Europe. In China, ERI equipment was chosen "for a significant majority of new SWRO plants," ERI states in its prospectus.
What are the financial results of Energy Recovery IPO?
ERI last year saw $5.8 million in net income on $35.4 million in revenue, up from net income of $894,000 on revenue of $10.7 million in 2005. Between 2003 and 2007 the company saw an annual compound growth rate of 72 percent in revenue, according to its prospectus, largely due to growth in the SWRO market and ERI's increased penetration.
Which ticker symbol will be used by Energy Recovery IPO?
ERI applied for a listing on the Nasdaq market under the ticker symbol ERII.
| The lead underwriters are Citi and Credit Suisse. Let’s see how this IPO performs once it opens up for subscription. | Table of Contents |
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