ADESA, Inc. | Initial Public Offering in 1992
Initial Public Offering in 1992
Shortly after forming ADESA, Hockett and Pedigo announced plans to sell shares to the public to help fund further acquisitions, as well as to pay for construction of a new auction in Buffalo, New York, of which the firm would own 80 percent. In April 1992 two million shares of stock were sold at $11.50 each. Hockett retained controlling interest, with 56 percent of the total.
After the initial public offering (IPO) was completed, the firm purchased the remaining 20 percent of the Buffalo auction, and the fall of 1992 saw the purchase of Concord Auto Auction in Acton, Massachusetts, for $16 million. Revenues for the year topped $45 million, up from nearly $29 million the year before. Net earnings stood at $3.6 million.
In the spring of 1993 ADESA acquired two auctions in Knoxville, Tennessee, which it would continue to operate until a new, larger facility in the area was completed. In July the firm entered Canada,...
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