Post by
retiredcf on Sep 17, 2021 10:31am
CIBC
EQUITY RESEARCH
September 16, 2021 Earnings Update
TIDEWATER RENEWABLES LTD.
Partial Exercise Of Over-allotment Reduces Capital Risk
Our Conclusion
Tidewater Renewables has announced it has issued an additional 735,000 common shares at a price of $15.00 per common share pursuant to the over-allotment option given to the company as a part of the initial public offering. Gross proceeds of just over $11 million reduce capital risk to shareholders, which we view as a more important consideration than the dilution implied by higher shares. We reiterate our Outperformer rating and $26 price target based on a sum-of-the-parts valuation using EV/EBITDA multiples based on 2023E, with a consolidated multiple of 5.4x.