Close the Loop Limited (ASX: CLG*)*, an end-to-end solutions provider from design and manufacturing, through to collection and recycling of products, has commenced trading on the ASX following the successful completion of an initial public offering.
The IPO raised gross proceeds of $12 million at a price of $0.20 per share, valuing the Company at a market capitalisation of $65.9 million at the IPO price. A further $3.75 million was raised to allow some long-term Close the Loop shareholders the ability to exit and sell their shareholdings into the float.
It was strongly supported, introducing new institutional and sophisticated shareholders who can support Close the Loop through its next phase of growth. Funds raised will enable the Company to scale its operations by upgrading machinery, installing new processing equipment for plastic washing and separation, increasing automation and funding acquisitions.
Close the Loop is made up of two companies who merged ahead of the IPO.
Together the combined group provides end‐to‐end solutions for reducing waste to landfill and getting recycled content back into new products through operations in Australia, North America, Europe, Vietnam, China and South Africa. In FY21 Close the Loop Group reported revenue of $67.4 million and forecasts revenue to grow to $73.9 million in FY22.
Commenting on the Company’s IPO, Close the Loop Chairman Greg Toll said: “We are delighted with the outcome of the IPO and the strong support shown by our new institutional and sophisticated investors. Our listing today on the ASX marks not just an important milestone for Close the Loop as we progress our next phase of growth, but the Company has become the first end-to-end ‘circular economy’ business to list in Australia. I would like to thank our existing shareholders for their ongoing support and warmly welcome our new investors to share in this exciting journey.”
Group Chief Executive Officer Joe Foster said: “Today Close the Loop becomes Australia’s most advanced vertically integrated design, manufacturing, collection and recycling company, that reduces waste to landfill and gets recycled content back into new products. Our award-winning packaging products and regenerative uses for plastics help companies stay ahead of evolving recycling guidelines and regulations.”
“With only two per cent of plastic packaging globally currently being recycled, customers need more effective and efficient recovery and take back or re-use of valuable product resources to increase their sustainability footprint. Coupled with the strong regulatory changes stipulated by governments around the world, we are excited about Close the Loop’s prospects and our ability to benefit from these key long-term global trends.”
Aitken Murray Capital Partners Pty Ltd and Cumulus Wealth Pty Ltd acted as Joint Lead Managers to the Offer. Thomson Geer Lawyers acted as Legal Adviser to Close the Loop Group.