Xpansiv sets $590m IPO raise limit

Xpansiv expects major global funds to provide the support it needs to list as a business worth more than $2bn. Picture: James Gourley/NCA NewsWire

Global ESG commodities trading platform Xpansiv plans to raise at least $590m for its initial public offering, according to sources.

It comes as the pathfinder for its float is set to be released to the market any day.

While the price is yet to be fixed, the widely held expectation for some time is that the company will be worth about $2bn once it hits the boards.

The funds from the $590m-plus raise will be used to buy US-based energy and environmental markets registry infrastructure business APX for at least $US300m in a deal that was announced in March.

So far, it is thought that much of the IPO interest for Xpansiv is likely to come from large global investors like Capital Group, Blackrock and Fidelity.

No doubt, Xpansiv’s owners will be keeping a close eye on the boards this Friday when gold mining analysis firm Chrysos lists with a $637m market value – the first major listing in Australia this year.

Many believe that even though Chrysos was seen as an attractive investment prospect, it did well to lock in the demand it did for its float.

It’s a sensitive time for equities deals right now, given the global market volatility being brought on by soaring inflation, rising interest rates and an uncertain geopolitical environment.

Should Chrysos hit the skids, it could cause Xpansiv to do a rethink around its price, yet a strong performance may see global investors pile into the offering and push its valuation closer towards the $3bn mark.

One factor that prospective investors are taking into account is the convertible shares that were sold in the pre-IPO raise that will convert at a 20 per cent discount to Xpansiv’s share price when the company lists.

Working for Xpansiv are Barrenjoey Capital Partners, UBS and Shaw and Partners, with the latter two working with the company on a pre-IPO raising last year.

It is understood that the commodities trading platform hopes to float by June.

While Xpansiv is yet to become profitable, its annual revenue is growing rapidly and is thought to be nearing $200m.

Much of the global company’s business revolves around the trading of carbon credits.

It was formed in 2019 through the merger of carbon, renewable energy and water trading platform CBL and Xpansiv, which was founded in 2016 and has more than 100 employees in nine offices across Australia, the US, Canada and Britain.

It raised $US100m in September, doubling the size of the original amount it was to raise due to strong demand.

Investors include Macquarie Group, S & P, Clean Energy Finance Corporation, CBA, Hartree Partners, Wilson Asset Management, the Fairfax family’s office, known as Cambooya Investments, and BP.