IPO Watch: Another mining services company – MLG Oz – joins the ASX, gains 30pc
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The ASX today welcomed another mining services IPO in Kalgoorlie-based company MLG (ASX:MLG).
MLG is a provider of integrated logistics supply chain services to the resources sector as well as civil infrastructure industries.
These include supplying bulk materials products such as sand and cement as well as civil works such as vehicle and road maintenance, crusher feed and rehabilitation work.
MLG raised $70.7 million at $1 per share as part of its IPO. Of this, $50 million was from new shares and $20.7 million was from a partial founder sell down.
MLG shares commenced trading at 12pm (AEST) and rose to $1.31 – a 30 per cent premium.
MLG founder and managing director Murray Leahy, who formed the company in 2002 and owns just over 50 per cent of it, said the IPO marked an exciting time for the company.
“We are excited about becoming a listed company and the opportunities it creates to further grow the business,” he said.
Leahy says the capital will initially be used to reduce debt but in time it will obtain new equipment and expand its operations.
Similar to its already listed peers, MLG has solid demand for its services in conjunction with the commodities sector.
It forecasts FY21 revenue of $241.6 million and pro forma earnings of $41 million.