US firm Advanced Drainage Systems (ADS), a leading global manufacturer of water management products and solutions for commercial, residential, infrastructure and agricultural applications, started trading 14.5 million shares to the public at US$16 per share, on the New York Stock Exchange (NYSE) on 25 July.

ADS is offering around 5 million shares of its common stock and the selling stockholders named in the registration statement are offering 9 million shares of common stock. The selling stockholders have granted the underwriters an option to purchase up to an additional 2.1 million shares of common stock at the IPO price less the underwriting discount, within 30 days from the date of the offering. The offering is expected to close on or about July 30, 2014, subject to customary closing conditions.

ADS intends to raise US$232 million and use the net proceeds from this offering to fund its outstanding debt of at least US$82.9 million and for general corporate purposes. ADS will not receive any of the proceeds from the sale of shares of common stock by the selling stockholders.

ADS produces thermoplastic corrugated pipes for use in the construction and infrastructure marketplace, including non-residential, residential, agriculture and infrastructure applications. Founded in 1966, the company operates a global network of 58 manufacturing plants and 28 distribution centres.