Float of chemical waste group DGL on track

Picture: iStock

Chemical waste management business DGL Group is believed to be working towards locking in support for its $100m initial public offering from a key group of investors this week as part of a cornerstone process.

Working on the float is Bell Potter, and so far the New Zealand-based company that has operations in Australia and other parts of the world has been well received by investors.

DGL was founded by Kiwi businessman Simon Henry and has grown through acquisition, including the purchase of Chempro Logistics in the 1990s.

It 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.

Working on the float is Bell Potter and NZ broker Forsyth Barr, and the understanding is a dual listing in Australia and New Zealand is on the cards.

DGL is believed to be generating about $30m of annual earnings and is hoping to secure a price that values it at about 8 to 10 times that number, or about $300m. DGL will tap the market for about $100m.

Elsewhere, CPE Capital and Macquarie Infrastructure and Real Assets are believed to be in the last leg of a deal to buy the listed Bingo Industries, with the final details being ironed out over the weekend.

After making an indicative offer of $3.50 per share for Bingo in January, CPE Capital and MIRA were understood to have finalised their due diligence in March and a firm offer has been imminent ever since.

Now it is understood to be almost a done deal for the CPE and MIRA consortium with chief executive Daniel Tartak, whose family founded Bingo, and major shareholder Ian Malouf planning to own stock in the company once privatised.