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3D Printer Voxeljet: A Perfectly Timed IPO

This just-filed offering looks set to be a sizzling deal


The 3D printing rage continues. Yesterday, the Germany-based 3D printing company voxeljet filed for an IPO. The company plans to list on the NYSE under the symbol “VJET” and the lead underwriters include Piper Jaffray and Citigroup.

And while voxeljet is fairly small, it’s still likely to benefit from investor enthusiasm for 3D operators.

Scoop Up This Oversold 3D Printing Stock at a Discount
Scoop Up This Oversold 3D Printing Stock at a Discount

Voxeljet is certainly a pioneer in the industry, as it was founded in 1999. Its focus has been on high-speed, large-format 3D printers for industrial and commercial customers. According to the filing, the company offers customers “the highest volumetric output rate in the industry due to the combination of our large build boxes and print speeds.”

Right now, voxeljet offers five 3D printer systems and plans to launch another at the end of 2013. Overall, it has installed 52 printers installed across the globe. All support principal material sets like sand, plastics and proprietary chemical binding agents.

While the 3D market is highly competitive, VJET has invested heavily in its research and development. To this end, the company has a portfolio of 170 U.S. and international patents and applications. Plus, those investments have been paying off.  From 2010 to 2012, revenues grew at a 35% compound rate, hitting $11.3 million. The company also posted a decent profit of $277,000 last year, thanks in part to customers like Daimler (DDAIF), BMW (BAMXY), Ford (F) and 3M (MMM).

Of course, investors will probably be more interested in the potential market opportunity, which is enormous. According to this year’s Wohlers Report, global sales of 3D printing products and services is forecast to grow from $2.2 billion in 2012 to $6 billion by 2017.

Such potential has already been seen with other stocks in the sector, which have been in rally mode. 3D Systems (DDD) is up almost 50% year-to-date, while ExOne (XONE) has clocked a return of 92% over the same time period.

In other words, it looks like a good time for VJET to print some money from the IPO market.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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