PQ Group Files for IPO

By Chris Lange Updated Jan 12, 11:06AM EST · Published Jun 13, 8:25AM EDT

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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.

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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.