Slow start for Tidewater IPO

Article Excerpt

TIDEWATER RENEWABLES LTD. $14 is a hold. The company (Toronto symbol LCFS; Manufacturing Sector; Shares outstanding: 34.7 million; Market cap: $485.8 million; No dividend paid; Takeover Target Rating: Medium; www.tidewater-renewables.com) produces low-carbon fuels from renewable sources such as used cooking oil, inedible animal fats and waste wood. It also operates natural gas storage facilities. Parent company Tidewater Midstream and Infrastructure Ltd. (Toronto symbol TWM) completed an initial public offering of shares in Tidewater Renewables on August 18, 2021. It sold 10.0 million common shares at $15.00 each. The stock has made little progress since the IPO, despite strong demand from institutional investors for environmentally friendly companies. That modest share-price rise reflects investor concerns over escalating feedstock costs and the company’s reliance on government tax credits. Tidewater Renewables is a worthwhile hold. hold…