Summary
- Montauk Renewables intends to raise $20 million in an IPO, although the final figure may differ.
- The firm owns and operates facilities that convert biogas into electricity.
- MNTK has suffered declining revenue and profits in recent periods.
- Looking for more investing ideas like this one? Get them exclusively at IPO Edge. Get started today »
Quick Take
Montauk Renewables (MNTK) has filed to raise $20 million in an IPO of its common stock, according to an S-1 registration statement.
The firm is a processor of methane waste gas to produce electrical grid power.
MNTK has produced declining revenue and sharply reduced profits in recent periods.
I’ll provide a final opinion when we learn more about the IPO from management.
Company and Technology
Pittsburgh, Pennsylvania,-based Montauk was founded to develop and operate renewable natural gas (biogas) projects such as waste methane from landfills, livestock feed and other non-fossil fuel sources to provide energy for electricity.
Management is headed by president and CEO Sean McClain, who has been with the firm since 2014, and previously held management positions at BPL Global Limited, Bayer and Dick's Sporting Goods.
Below is a brief a biogas power plant animation video:
Source: Smart Jarvis
Montauk has received investment from investors including Jon Copelyn, Theventheran Govender, CFB Clean Energy Capital and others.
Customer Acquisition
The firm's customers include landfill and livestock farm operators, local utilities, large refiners and commercial RIN off-take companies. Electricity customers include electricity utilities that buy electricity according to fixed-price contracts.
G&A expenses as a percentage of total revenue have been rising as revenues have decreased, as the figures below indicate:
