Chemical waste management business DGL Group has locked in a $1 per share price for its initial public offering, taking its market value to $257 million.
The company will raise $100m for its IPO to fund growth following a cornerstone process, as first flagged by DataRoom this week.
Working on the float is Bell Potter and Canaccord Genuity, and the New Zealand-based company that has its core operations in Australia and New Zealand has been well received by investors.
Including debt, DGL will be worth $261.3m and the valuation equates to nine times earnings before interest, tax, depreciation and amortisation forecast for the 2022 financial year.
It will list on May 24 on a normal settlement basis. Institutional investor bids are due on April 27 and it lodges its prospectus the following day.
DGL was founded by Kiwi businessman Simon Henry and has grown through acquisition, including the purchase of Chempro Logistics in the 1990s.
The trans-Tasman business operates in warehousing and distribution, chemical manufacturing and environmental solutions.
Across the board, DGL has more than 1300 customers and has annual has waste processing capacity of 325,000 tonnes.
It generated $19.1m of EBITDA for the 2020 financial year and is expected to generate about $26m for the 2021 financial year and a $9.5m net profit after making $4.8m of net profit for fiscal 2020.
Mr Henry will retain a 57.3 per cent stake in the business once it is listed in Australia and New Zealand.
The company operates through three divisions – chemical manufacturing, warehousing and distribution and environmental solutions.
Its chemical manufacturing division involves the production of its own speciality chemicals and contract manufacturing on behalf of third parties.
Its warehousing and distribution arm has a focus on logistics and warehousing services, focusing on dangerous and hazardous goods across Australia and New Zealand, and logistics and distribution for other goods including food, pharmaceutical products, agricultural products, security sensitive goods and temperature controlled products.
Its environmental solutions division involves liquid waste treatment, battery recycling and lead smelting and refining.
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