Schneider National Plans IPO
Schneider National remains the largest privately held trucking company in the US. In terms of revenue, the company is excelling. But a new announcement made by the company indicates that it aims at furthering its presence in the market. The announcement also indicates that a prolonged period of financial skepticism for the trucking industry may be nearing its end.
Schneider National announced that it plans to go public in 2017 and is planning a stock offering. The Green Bay-based company is the seventh-largest trucking company in the country with revenue of $4.3 billion and a fleet of over 11,000 trucks. The company’s IPO (initial public offering) may create several benefits for the organization.
The only feedback from Schneider concerning the deal comes from a spokesman who said the company’s decision to undertake the IPO is aimed “to facilitate continuity of controlling ownership of Schneider by the future generations of the Schneider family, while continuing forward with its long-standing, independent, and professional, corporate governance structure.”
While trucking stocks experienced a noticeable drop between the middle of 2015 and the beginning of this year, the rebound has many feeling optimistic. Many assumed that Schneider would’ve made a public offering before, as its reputation for consistency and reliability stands out in the industry.
John Anderson of Greenbrier Equity Group LLC, noted that Schneider may have a difficult time commanding a high price due to the performance of the industry as a whole in recent years. However, he did note that conditions were not dire, saying: “This is not a perilous time for trucking at all. There is not a stay-alive risk out there for big, good carriers. There is an earnings risk if we continue to have soft demand. But the good companies are managing capacity well and this might be a time when smart, long-term money would want to get into trucking.”