Ardagh Gears Up for IPO

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Ardagh Finance Holdings has filed an amended F-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No pricing details were listed in the filing but the offering is valued up to $100 million. The company intends to list its shares on the New York Stock Exchange under the symbol ARD.

The sole underwriter for this offering is Citigroup.

This year has been somewhat dismal for IPOs, but prospects could pick up next year. With 2017 just around the corner, more companies are looking to have IPOs as the markets are reaching new highs.

Ardagh is a leading supplier of innovative, value-added rigid packaging solutions. Its products include metal and glass containers primarily for food and beverage markets, which are characterized by stable, consumer-driven demand. The end-use categories include beer, wine, spirits, carbonated soft drinks, energy drinks, juices and flavored waters, as well as food, seafood and nutrition.

The company also supplies the paints and coatings, chemicals, personal care, pharmaceuticals and general household end-use categories. Customers include a wide variety of leading consumer product companies that value these packaging products for their features, convenience and quality, as well as the end-user appeal they offer through design, innovation, functionality, premium association and brand promotion.

With a significant invested capital base, extensive technological capabilities and manufacturing know-how, management believes it is well-positioned to continue to meet the dynamic needs of global customers. Ardagh has mainly built its company through strategic acquisitions and have established leadership positions in large, attractive markets in beverage cans, food and specialty cans and glass containers. Approximately 95% of revenue is derived from end-use categories where it believes it holds one of the top three positions.

The company described its finances as follows:

Our pro forma net profit and Adjusted EBITDA for the nine months ended September 30, 2016 were €55 million and €1,027 million, respectively. Our pro forma net profit and Adjusted EBITDA for the year ended December 31, 2015 were €40 million and €1,287 million, respectively. Our net cash from operating activities for the nine months ended September 30, 2016 and for the year ended December 31, 2015 were €315 million and €568 million, respectively. Our Free Cash Flow for the nine months ended September 30, 2016 and for the year ended December 31, 2015 were €115 million and €264 million, respectively.

Ardagh intends to use the net proceeds from this offering to reduce its indebtedness.