PQ Group Closes in on IPO

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PQ Group Holdings has registered an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No pricing details were mentioned 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 PQG.

The underwriters for the offering are Morgan Stanley, Goldman Sachs, Citigroup, Credit Suisse, JPMorgan, Jefferies, Deutsche Bank, Keybanc Capital Markets, Evercore ISI and Nomura.

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. Its materials are critical ingredients in consumer products that make teeth brighter, skin softer and wounds heal faster. PQ produces highly engineered materials that make highways and airports safer for drivers and pilots.

In 2016, PQ served over 4,000 customers globally across many end uses and, as of the end of June 2017, operated out of 72 manufacturing facilities strategically located across six continents. Management believes the firm is a leader in each of its product groups, holding what it estimates to be a number one or number two supply share position for products that generated more than 90% of its 2016 pro forma sales.

In the filing the company described its finances as follows:

For the year ended December 31, 2016, we generated sales of $1,064.2 million and pro forma sales of $1,403.0 million, a net loss of $(79.7) million and a pro forma net loss of $(57.7) million, and pro forma Adjusted EBITDA of $420.8 million, which represented a pro forma Adjusted EBITDA margin of approximately 30%.

PQ intends to use the net proceeds from this offering to pay down its indebtedness, with the remainder going toward working capital and general corporate purposes.