A significant shareholder in Alliance Laundry Systems plans to sell 20.5 million shares in a secondary offering, according to a filing with the U.S. Securities and Exchange Commission.
The transaction, disclosed on Monday, represents a substantial block of shares in the commercial laundry equipment manufacturer, which operates under the brand Speed Queen. The filing did not specify the identity of the selling shareholder but noted the shares are being offered at a price to be determined.
The total value of the offering is estimated at roughly $3.1 billion based on Alliance Laundry’s closing share price of $151.25 on Friday. The company’s market capitalization stood at approximately $14.5 billion as of the same date.
Alliance Laundry, which went public in 2020, provides commercial laundry equipment and solutions to industries including hospitality, healthcare, and multifamily housing. The company has seen steady demand amid growth in the laundry services sector, though the secondary offering may pressure its stock price in the near term due to increased supply.
The proceeds from the sale will go directly to the selling shareholder, not the company. Alliance Laundry has not indicated any plans to use the offering proceeds for operational or capital expenditure purposes.
The shares are expected to be sold through an underwritten offering, with J.P. Morgan Securities acting as the lead bookrunner. The transaction is subject to market conditions and regulatory approvals.
Alliance Laundry did not immediately respond to requests for comment on the potential market impact of the secondary offering.
