Mayville Engineering Company (NYSE: MEC) priced its public offering of 4.35 million shares at $20 per share, aiming to raise approximately $86.9 million to pay down debt.
The manufacturing services company said it would use the net proceeds to reduce amounts outstanding under its senior secured revolving credit facility, fund capital expenditures, and for general corporate purposes. The offering is expected to close on May 21, 2026.
The offering consists of 4,348,000 shares of common stock at a price of $20 per share. Underwriters have a 30-day option to purchase up to an additional 652,000 shares. A portion of the debt to be repaid was borrowed to finance the acquisition of Accu-fab in July 2025. The credit facility carries an interest rate of 6.42% as of March 31 and matures in June 2028.
Shares of the Milwaukee-based company fell 10% to $21.25 in after-hours trading Tuesday following the announcement. The offering price of $20 represents a significant discount to the stock's closing price before the news. Through the close, the stock had been up 26% year-to-date.
William Blair & Company and Craig-Hallum Capital Group are acting as lead book-running managers for the offering, with Northland Securities as a co-manager.
Founded in 1945, Mayville Engineering provides manufacturing solutions to a variety of end markets, including commercial vehicles, construction, powersports, and military. The company operates 22 facilities across nine states.
The offering dilutes existing shareholders but allows the company to strengthen its balance sheet by reducing debt and its associated interest expense. Investors will watch for the market's absorption of the new shares and for further details on the capital expenditures intended for growth sectors.
This article is for informational purposes only and does not constitute investment advice.
