Intriguing IPOs: Shimmick Corporation (SHIM)

The company certainly has a story to sell investors.

Construction of the Sacre-Coeur. Maximillien Luce, 1900, oil on canvas (Musée des Beaux-Arts de Caen)

Some companies just scream “ESG darling”. These businesses have some inherent traits that engender themselves to environment, social, and governance investors.

I’m not here to debate the merits of efficacy of ESG investing. At least not this time. Instead, let’s focus on an upcoming IPO, Shimmick Construction Corporation (NASDAQ: SHIM). The target market for this engineering and construction firm – water infrastructure – is one I have little doubt will score many points with the ESG investing crowd. Also, there are repeated stories pointing out America’s (and the world’s) need to spend on improving our water infrastructure. The combination of potential growth in an ESG-friendly sector seems like an offer that would attract a certain investor base.

As with most great stories, there are always some hidden warts. Here are Shimmick’s and whether they are enough to scare away investors.

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