Cardinal Infrastructure Group launched its U.S. public market debut with strong momentum, raising approximately $241.5 million in its initial public offering as investor appetite strengthens heading into the close of 2025.
The Raleigh, North Carolina-based construction services firm priced 11.5 million shares at $21 each, landing within its marketed range of $20 to $22 and positioning the company with a valuation of about $768.74 million. The offering marks one of several late-year IPOs expected before markets slow for the holiday season.
Cardinal’s deal helps kick off what analysts expect to be a busier-than-usual December for new listings. Companies are moving to capture improving market sentiment as the Federal Reserve signals it may be nearing an interest-rate cut, reducing uncertainty for risk-sensitive issuers.
According to Matt Kennedy, senior strategist at Renaissance Capital, the broader market rebound is giving issuers renewed confidence. "Investor risk appetite is re-emerging after last month's AI-related concerns caused a sell-off in the tech sector, including among new listings," Kennedy said. His comments reflect a notable shift from the volatility that rattled markets just weeks earlier.
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Two other companies — medical imaging firm Lumexa Imaging and automated investment platform Wealthfront — are also set to debut later in the week, highlighting the renewed activity on the New York exchanges.
Founded in 2013 by CEO Jeremy Spivey, Cardinal Infrastructure specializes in wet utility installations, including water, sewer, and stormwater systems as well as related civil-site services. The company has grown steadily over the past decade, driven not only by organic expansion but also through a series of strategic acquisitions. Cardinal estimates that these acquisitions account for nearly 27% of its cumulative growth since inception.
The firm’s recent financials show further momentum: Cardinal posted $26.2 million in profit on $310.2 million in revenue for the nine months ended September 30 — up from $21.9 million in profit on $230.3 million in revenue during the same period last year. The double-digit revenue growth underscores continued demand for utility and infrastructure services across fast-growing markets.
The IPO was led by Stifel and William Blair as book-running managers, while D.A. Davidson served as lead manager. The company's stock is scheduled to begin trading on the Nasdaq under the ticker “CDNL” on Wednesday.
With a strengthened capital base and growing project pipeline, Cardinal is entering the public markets at a time when municipal and private-sector infrastructure spending continues to rise nationwide. The new funding positions the company to pursue additional acquisitions, invest in equipment and workforce expansion, and potentially accelerate growth in emerging markets across the Southeast and Mid-Atlantic.
Originally reported by Reuters.
