A decade after taking the company private, the owners of America’s fifth biggest trucking company are preparing to sell more than $300 million of stock and return the company to a publicly owned business traded on the New York Stock Exchange.
U.S. Xpress Enterprises Inc., Chattanooga’s biggest trucking company still owned primarily by its founding families, announced Monday it will offer more than 18 million shares of stock at an initial price from $18 to $20 per share. The Chattanooga- based truck carrier, which began in 1986 and was publicly traded on the Nasdaq Exchange from 1994 to 2007, is preparing to issue stock again as the growth of the economy and e-commerce boosts freight activity and truck company valuations.
U.S. Xpress CEO Eric Fuller at the company’s headquarters.In documents filed with the U.S. Securities and Exchange Commission on Monday outlining the terms of the offering, U.S. Xpress said trucking rates rose 14.4 percent in the first quarter of this year over the same period a year earlier.
“The truckload market is cyclical, and it is currently experiencing increases in volumes and rates, primarily due to tightening driver supply coupled with increasing industrial and retail freight demand,” the company said. “We believe our scale, management team and continued roll-out of tactical operational improvements, as well as our mix of over-the-road, dedicated and brokerage services, position us for long-term success in our industry.”
A new federal regulation forcing truckers to digitally track their driving hours with an electronic logging device, or ELD, also is expected to boost to large trucking firms like U.S. Xpress as some independent and small operators leave the business.