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British Waste Management Firm Cuts IPO Price
Due to the effects of Brexit, it’s now cutting its target price.
1 Min Read
Advanced Disposal recently conducted its long awaited IPO in the United States. Its stock has traded in $19-$21 per share range since the offering. The IPO raised more than $300 million for the firm.
That offering had been delayed because markets were roiling earlier in the year when Advanced Disposal had originally planned to go public. But the situation had improved enough by this fall for the company to move ahead.
It’s not the only big hauler that’s testing the public markets. Nor is it the only one that’s seen its share price affected by macroeconomic conditions. In Britain, the nation’s second largest waste company is also conducting an IPO. But due to the effects of Brexit, it’s now cutting its target price.
The Guardian has more:
When Biffa announced plans to float last month it was reported to be seeking a market valuation of about £1bn. But last week the company failed to get investor support for a sale at 220-270p a share, which would have valued it up to £675m.
Investors have become increasingly concerned about the outlook for UK companies amid worries about Britain’s economic prospects, the plunging value of the pound and the government’s confrontational stance over Brexit.
Biffa and its owners, including private equity fund Bain Capital, were said to be determined to push the float through, suggesting they did not think markets would revive soon.
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