Upcoming IPO Profile: Cellu Tissue Holdings (CLU)

Cellu Tissue Holdings (NYSE:CLU) is scheduled to raise a relatively large sum of money in the upcoming week's IPO. The manufacturer of private label tissue products - with a current market cap of $306 million - will raise another $125 million via the sale of 7.8 million shares prices somewhere between $15 and $17 each.

From a P/S perspective, Cellu Tissue Holdings looks like a bargain before or after the IPO; last year's sales totaled $528 million.

From an earnings perspective though, last year's net profits of $11 million point to dangerously low margins. Perhaps the cash infusion will be the catalyst for greater efficiency.

Review the entire prospectus here