The quiet period for the AquaVenture Holdings Limited IPO (WAAS) is scheduled to expire on Oct. 31, 2016. The expiration will allow the company’s underwriters to release reports and recommendations on Nov. 1, 2016. These reports are likely to be positive and result in a temporary increase in share price. We recommend purchasing shares in WAAS ahead of the IPO Quiet Period expiration and have a price target of $24 for the event.

Our research has found that purchasing shares 5 days prior to the quiet period expiration and selling 2 days after expiration resulted in above-market returns of over 2%. The return was higher for a sample that excluded Banks and REITS (approximately 2.7%). We suggest other investors consider following this holding strategy.

Underwriters for the IPO include Citigroup (C), Deutsche Bank (DB) and RBC, Canaccord Genuity, Raymond James and Scotiabank.

Business overview: Global provider of water-as-a-service

AquaVenture Holdings is a company that provides water-as-a-service to its customers around the world in order to help them ensure that their water is affordable and safe. It offers water treatment and purification services to business and governments and operates through its subsidiaries, Quench and Seven Seas. The company is based in Tampa, Florida and was founded in 2006. Currently, the company has over 500 employees.

In June 2014, Quench acquired Atlas, which enabled it to greatly expand its market in Boston, Massachusetts. Quench operates in the U.S., while Seven Seas builds, operates and designs water treatment facilities in Saudi Arabia, Chile, the Caribbean as well as the U.S.

Prior to going public, the company raised $157.91 million in six rounds of funding, with its most recent round taking place on May 1, 2015. Notable investors include Element Partners, T. Rowe Price (TROW), TPG Growth and others.

Management team overview

Douglas R. Brown founded the company and has served as a member of the board of directors and as chairman since Jan. 2007. He served as the chief executive officer from Jan. 2007 until Oct. 2012 and again from Oct. 2014 to the present. He previously served as the CEO of water purification technology company Ionics, Inc., which was sold to General Electric in 2005. Brown has two decades of experience in the water purification industry. He also has 17 years of prior experience working at Advent International, which is a global private equity firm. Brown holds a Bachelor of Science in chemical engineering from the Massachusetts Institute of Technology as well as a Master of Business Administration from Harvard University.