Some details have emerged about Schneider National’s proposed initial public offering (IPO), which will allow the Schneider family to hold a majority of votes in the elections of directors.
In total, Schneider (No. 8 on the CCJ Top 250) is selling just under 29 million shares – 16.8 million from the company and 12.1 million from Schneider family trusts, according to a filing with the U.S. Securities and Exchange Commission Friday.
The company anticipates the IPO price of its shares to be between $18 and $20 per share. At $19 per share, the company could make up to $359 million if the underwriters exercise their option to buy 4.3 million additional shares. The Schneider family will receive approximately $230 million from the sale.
The Schneider family and the Schneider National Voting Trust will hold “Class A” common stock, which is worth 10 votes each. The 28.9 million shares being sold are “Class B” common stock, which are worth one vote.
Schneider says it plans to use $150 million of the net proceeds from the IPO to pay down debt, and the remaining $110 million for general corporate needs, including capital expenditures, which includes a plan to move from a rented chassis model to a company-owned chassis model for its intermodal business.
Friday’s filing did not specify when the shares would be made public, but they will be sold on the New York Stock Exchange under the symbol “SNDR.” Up until the IPO, Schneider has been known as the largest privately-owned carrier in the country.
Last year, Schneider made just over $4 billion in revenue with a net income of nearly $157 million, according to the SEC filing.