ExOne aims for $68.3M IPO

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ExOne disclosed new details of its initial public offering this week, saying it hopes to raise $68.3 million by selling 5 million shares between $14 and $16 per share.

The North Huntingdon company said it could sell another 750,000 shares, including 266,667 by an entity owned by S. Kent Rockwell, ExOne's largest shareholder, if investor demand warrants. Selling the additional shares would increase the proceeds to $75 million.

The money would be used to expand the company's capacity and capabilities, pay off a $9.8 million line of credit provided by Mr. Rockwell, and purchase equipment now leased from two related entities for $3 million.

ExOne made the disclosures in a preliminary prospectus filed Monday with the Securities and Exchange Commission.

The company hopes to capitalize on its prowess in the 3D printing -- or advanced manufacturing -- industry, a technology some speculate will spur the next industrial revolution.

ExOne makes components for Boeing, Ford Motor, Caterpillar and other customers by taking digital images of products and slicing them into hundreds or thousands of layers the width of a human hair. The data is sent to a printer that emits alternating layers of sand and ceramics, stainless steel, glass and other materials into a box, where a liquid binder holds the layers together to form the physical version of the digital image.

The technology cuts costs by eliminating the labor intensive bending, punching, grinding and other processes traditionally used to make the products. It also enables users to customize products more efficiently.

The prospectus cites a forecast by Wohlers Associates, which estimates the advanced manufacturing industry will grow at a compound annual rate of more than 18 percent. The Fort Collins, Colo., consulting firm expects the industry will generate $6.5 billion in annual revenue by 2019.

ExOne lost $11.1 million in the first nine months of 2012 on revenue of $15.9 million. It lost $8 million in 2011 on revenue of $15.3 million.

The company grew out of Extrude Hone Corp. and was acquired in 2007 for $7.2 million by Mr. Rockwell, the son of industrialist Willard F. Rockwell. The company has 126 full-time employees at facilities in North Huntingdon; Troy, Mich.; Houston; Germany; and Japan.

If all 5.75 million shares were sold, Mr. Rockwell would control 39.7 percent of ExOne's shares, and he and other officers and directors would own 46.5 percent.


Len Boselovic: lboselovic@post-gazette.com or 412-263-1941.


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