Waste disposal company Biffa has cut the price of its London flotation to 180p a share, down from the original range of 220p-270p. Consequent investments result into total IPO capital of £262 million. New funds will be used to pay outstanding claim.
Earlier today waste Disposal company Biffa has confirmed that it has reduced the price of its London flotation from 220-270p per share to 180p. As a result of the it down-pricing of shares the company was able to attract investment amounting to a total of roughly £262 million, in addition to a possible £11 million over-allotment and will have market capitalization worth £450 million.
The offer was comprised of 118 million new shares, representing a total of 47% of the company and an additional 28 million shares subscribed by certain existing shareholders and current and former directors and senior management. The new funds raised in the IPO will be used to repay debts and settle a dispute with the HM Revenue & Customs over its landfill business.
Ian Wakelin, chief executive officer, described the company’s return to the stock market after eight years absence as a “significant milestone” and said the company “is well placed to exploit structural changes in the UK waste market”.