Kleopatra Files for IPO

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Kleopatra Holdings has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were listed in the filing, but the offering is valued up to $100 million, although this number is usually just a placeholder. The company intends to list its shares on the New York Stock Exchange under the symbol KP.

The underwriters for the offering are Citigroup, Credit Suisse, Goldman Sachs, Merrill Lynch, Baird and Jefferies.

This is the leading global provider in the rigid plastic film industry, with highly complementary capabilities in semi-rigid and flexible films used in packaging and other protective film applications. Its primary end-markets include pharmaceutical, medical devices and food and beverage, as well as applications for other consumer and industrial products.

Kleopatra sells a wide range of custom rigid plastic films, including many proprietary solutions, which it believes provide mission-critical safety and security functions and enhance performance or drive end-user pull-through on the shelf. The company has established itself as a leading supplier of rigid plastic films in the value chain for packaging and label and surface protection, among others, due to its expertise in compounding, formulation, calendering, extrusion, surface treatment and converting. Management believes that it is the leader in many of its end markets, with approximately 75% of fiscal 2016 net sales from end markets where it holds a top three market position.

The company detailed its finances as follows:

For fiscal 2016, net sales were $1,403 million, net loss was $11.6 million and Adjusted EBITDA was $242.9. Excluding the impact of foreign currency translation, net sales decreased by 0.5% and Adjusted EBITDA increased by 5.3%. For fiscal 2016, net cash provided by operating activities was $116.8 million and Adjusted Free Cash Flow was $86.4 million.

Kleopatra intends to use the net proceeds from this offering to repay indebtedness and for general corporate purposes.

By some key metrics, 2016 has been a dismal year for IPOs. Still, the stock market has improved and we have featured the 18 biggest companies that may IPO in 2017.