Family-owned chemicals business Redox has called in extra troops to get its mooted billion-dollar-plus IPO off the ground.

Redox has staffed UBS and Ord Minnett as a joint lead managers. Shaw and Partners and Wilson’s Advisory have been anointed co-lead managers on the float.

UBS has fended off another bulge bracket investment bank from joining Redox’s float lineup, and is sole global co-ordinator and sole book runner.

But the three new additions show Redox’s bookbuild should have a meaningful retail leg.

Redox is forecasting $97.4 million in after-tax profits and a dividend payout ratio of 60 per cent to 80 per cent. UBS’s analysts reckon the business should be valued at $1.4 billion to $2.1 billion, inclusive of $25 million net cash.

It’s the type of old-fashioned business that fund managers love to look at, and is slated to reopen the IPO market which has the likes of MolyCop, Mason Stevens, Cuscal and Greatland Gold waiting in wings.

UBS’ research analysts are this week doing the rounds of fund managers, who are still waiting for firm details around pricing. The Swiss bank has valued the IPO hopeful at between $1.4 billion and $2.1 billion, inclusive of $25 million net cash.

Article source: AFR, 24 May 2023