6K Additive has scored a massive hoard of cash after an unexpected IPO.
The Pennsylvania-based company developed a unique microwave-based method of producing very high quality metal powders for 3D print applications. Their approach not only produces excellent powder, but also enables far easier recycling of metal into additive material.
This week they abruptly announced that the company had gone public by entering the Australian Securities Exchange (ASE). This is quite curious, as you would normally expect a US company to appear on a US exchange. However, it seems that 6K Additive saw some technical advantages in the ASE, which might include a less-crowded field to attract more investment. It is also possible that ASE listing might be faster than going through a lengthy US exchange process.
The IPO, which effectively means putting a chunk of their shares on the market for sale, meant that 6K Additive raised A$48M (US$31M), which is quite a healthy amount.
In addition, 6K Additive also announced they had received a US$23.4M grant from the US government and a new bank loan of US$27.4M. In total it seems the company now has something close to US$82M at their disposal. What will they do with all that cash?
It turns out they intend on using the funds to dramatically expand their production capacity. That’s what you do when you’ve perfected your process: grow. They list the plans for the new capital:
- Complete its near-term capacity expansion program at its global headquarters campus in Burgettstown, PA on schedule
- Invest in additional UniMelt plasma systems and downstream processing equipment to significantly scale titanium and high-performance nickel alloy powder production
- Pursue strategic growth opportunities with key clients in the aerospace, defence, energy, and industrial sectors
They also stated that their “sales pipeline” is now US$240M, suggesting they have quite a few orders to fill. The ongoing growth and revenue positioned them well for an IPO.
As a new public company, we will be adding 6K Additive to our weekly leaderboard, which tracks the valuations of publicly-traded 3D print-related companies.
Via 6K Additive
