July 3 2023, David R Brown
Australian chemical distributor, Redox' IPO opens slightly lower on ASE debut
Australia's biggest chemicals and ingredients distributor, Redox raised A$402 million ($267.29 million) by selling its shares at A$2.55 on its IPO debut on the Australian Securities Exchange (ASE) on Monday 3rd July 2023, earning the business an indicative market capitalisation of A$1.34 billion. The company intends to use a significant proportion of the money raised to fund acquisitions and further growth. The company's 391 staff each received A$1000 of free shares in the float.
Our growth, despite recent macroeconomic volatility, demonstrates the resilient nature of our business
Raimond Coneliano
CEO of Redox Ltd
According to the company's IPO prospectus, “Redox has identified multiple potential acquisition targets in its major operating jurisdictions and intends to continue analysing and evaluating potential acquisition targets applying a disciplined inorganic growth framework focused on strategic merit and value,”. The main geographic focus for acquisitions in the short term is Australia and New Zealand. Redox is already in the process of negotiating a small acquisition of an unnamed supplier to the human and animal health sector in Australia, which would add sales of $6 million in 2023-24.
Redox chairman Ian Campbell also emphasised that expansion in the United States and Asia will be an important growth plank. It set up its first US office in Los Angeles in 2015. “Redox also intends to continue growing its offshore presence in the United States and Asia and will continue to assess the financial and strategic merit of acquisition opportunities within a currently highly fragmented market,” he said.
Chief executive Raimond Coneliano added, “Our growth, despite recent macroeconomic volatility, demonstrates the resilient nature of our business. ”
The group's top-five suppliers accounted for 12 per cent of total revenues in 2021-22. Redox forecasts that revenue will rise by 15 per cent to A$1.24 billion in 2022-23, and then by 6.8 per cent to A$1.33 billion in 2023-24. Net profit after tax on a pro forma basis is forecast to be $81.3 million this year, increasing to $97.4 million in 2023-24.
About Redox Ltd
Headquartered in Minto in south-western Sydney, Redox was established in 1965 by the Coneliano family. The company sells chemicals and ingredients to 6400 customers across industries including food, beverages, vitamins, crop protection, animal nutrition, paint and plastics. Redox operates from 16 global locations, across 4 countries and has more than 100 storage facilities. In 2022, Redox reported revenues of A$ 1,081.8M, a Gross profit margin of 22.5% and an EBITDA of A$138.3M.
Source(s): Redox Press Release
Further Information
Visit: https://redox.com