Mountain Valley Awaits Right Time for IPO

by Mark Friedman  on Monday, Aug. 6, 2012 12:00 am  

“When we decide that the markets look like they’ll be receptive, … then we’ll update our numbers,” Speed said.

Mountain Valley hasn’t settled on a share price for its IPO. “That will be determined in consultation with the investment bankers,” he said.

In the March filing with the SEC, Mountain Valley proposed a maximum aggregate offering price of $23 million.

Part of the money raised would be used to pay for the consolidation of its Little Rock manufacturing plant into its Hot Springs location. That project was started at the end of 2011 and has been completed, Speed said. The move cost about $1.5 million and “went according to plan,” Speed said.

Founded in 1871, Mountain Valley bottles and sells premium natural spring water and manufactured bottles. Its bottled water division accounted for 58 percent of its sales, while its manufactured bottle division generated the rest.

Mountain Valley’s biggest shareholder is MV Holdings LLC of Rogers. It currently owns 85 percent of the company, but will own 51 percent of the stock after the IPO, the filing said. If the demand for the shares is high and more shares of the company are needed, however, MV Holdings could end up owning 46 percent of the company. MV Holdings is controlled by Johnelle Hunt, co-founder of J.B. Hunt Transport Services Inc. of Lowell.



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