Putting iPads in airports: OTG EXP sets terms for $553 million IPO

OTG EXP, a airport concession operator with over 220 locations primarily around New York City, announced terms for its IPO on Thursday.

The New York, NY-based company plans to raise $553 million by offering 32.5 million shares at a price range of $16 to $18. At the midpoint of the proposed range, OTG EXP would command a fully diluted market value of $1.7 billion.

“Known as the company that put iPads in airports,” OTG claims that its technology-based ordering model drives revenue while a lack of franchise fees boosts profitability. 

OTG EXP was founded in 1996 and booked $359 million in sales for the 12 months ended September 30, 2015. It plans to list on the Nasdaq under the symbol OTG. Morgan Stanley, Credit Suisse, Barclays, BMO Capital Markets and KeyBanc Capital Markets are the joint bookrunners on the deal. It is expected to price during the week of February 8, 2016.