PQ Group 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 stock on the New York Stock Exchange under the symbol PQG.
The underwriters for the offering are Morgan Stanley, Goldman Sachs, Citigroup, Credit Suisse, JPMorgan, Jefferies, Deutsche Bank Securities and KeyBanc Capital Markets.
This company is a leading global provider of catalysts, specialty materials and chemicals, and services that enable environmental improvements, enhance consumer products and increase personal safety. Its products and solutions help companies produce vehicles with improved fuel efficiency and cleaner emissions.
These materials are critical ingredients in consumer products that make teeth brighter, skin softer and wounds heal faster. PQ Group produces highly engineered materials that make highways and airports safer for drivers and pilots.
In terms of its finances, PQ Group detailed in its report:
For the year ended December 31, 2016, we generated sales of $1,064.2 million and a net loss of $(79.7) million, determined in accordance with GAAP. On a pro forma adjusted basis, which is a non-GAAP financial measure, we generated pro forma adjusted sales of $1,534.3 million and pro forma Adjusted EBITDA of $420.8 million, which represented a pro forma Adjusted EBITDA margin of approximately 27% for the same period. On a constant currency basis, our combined adjusted sales grew at a 1.5% compound annual growth rate from 2014 to 2016 and our combined Adjusted EBITDA grew at a 6.9% compound annual growth rate over the same time period.
The company intends to use the net proceeds from this offering to pay its indebtedness, with the remainder going toward working capital and general corporate purposes.