Cardinal IPO: shares in a comprehensive infrastructure services provider become available

Preliminary trading in shares of Cardinal Infrastructure, a provider of water utility installation services and other facilities across North Carolina, has begun on the Freedom (formerly Freedom Broker) customer trading system. Market participants' interest in the offering will show how willing investors are to invest in the housing sector, Reuters writes. Later on Dec. 10, the securities will appear on the Nasdaq exchange under the ticker CDNL. To participate, click on the ticker CDNL.

Cardinal successfully raised $241.5 million in its IPO. The company placed 11.5 million shares at $21 per paper, which was in the middle of the price range ($20-22). This gives the company a valuation of $768.7 billion, Reuters calculated .

The transaction was arranged by Stifel, William Blair and D.A. Davidson & Co.

Construction services provider Cardinal Infrastructure employs skilled personnel and a fleet of specialized equipment to install water utilities such as water, sewer, and storm drainage systems. The company also handles road leveling and paving and other residential, commercial, industrial, municipal, and government landscaping.

Founded in 2013, the company's business strategy is focused on the southeastern United States. Predominantly, Cardinal Infrastructure operates in areas of North Carolina. As of December 31, 2024, Cardinal had approximately 100 projects in various stages of completion in its portfolio.

The company's clients are developers of residential, commercial and industrial real estate, as well as municipal and state structures. Cardinal performs most of the work with its own crews and equipment, with little recourse to subcontractors.

The offering could be an indicator of how willing investors are to invest in the housing sector, one of the key pillars of U.S. economic growth, Reuters notes . While spending on AI infrastructure and growing government deficits continue to fuel commercial and industrial construction, the U.S. housing market is experiencing an acute shortage of new supply due to high mortgage rates and stringent regulatory requirements, the agency points out.

In early December, Cardinal reported revenue of $310.2 million for the nine months ended September 30, 2025, compared to $230.3 million for the same period in 2024. The growth, the company said, was supported by order volume of about $646 million, as of Sept. 30, 2025.

For the full year 2024, Cardinal generated revenue of $315.2 million, up from $248 million the company generated a year earlier. Its order book increased from $401 million to $512 million. According to Cardinal, nearly 71% of its 12-month revenue came from residential real estate developers.

IPO Edge analyst Donovan Jones notes that Cardinal filed for an IPO to finance growth and reduce its debt load. The expert emphasizes that the company has a growing order book, generates strong free cash flow and plans further expansion through new services and acquisitions.

Among the risks the analyst points out are geographic concentration and capital intensity of the business.

Freedom Finance analyst Alem Bektemirov says that the comparative valuation shows a moderate upside of about 4-5% from the offering price of $21, which indicates that the market has valued Cardinal Infrastructure fairly close to fair value. The main risks for the business, he said, are dependence on suppliers (negative impact on costs and fulfillment of contracts on time), as well as a possible decline in demand for services during economic recessions.

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Freedom clients will be able to get access to Cardinal shares before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the U.S. exchanges open (from 15:30-16:30 Astana time). To participate click on ticker CDNL.

This article was AI-translated and verified by a human editor