Yahoo Finance Waste firm Biffa announces market flotation
One of Britain's biggest waste disposal companies has unveiled plans to raise £270m from a flotation that will be the City's largest since the UK's vote to leave the European Union.
The initial public offering, first reported by Sky News earlier this week , will allegedly value the company at more than £1bn and shares could begin trading as early as next month.
The announcement marks one of the first major market flotations since uncertainty in the run-up to the EU referendum put a lot of corporate activity on hold.
Biffa employs more than 7,000 people and serves 2.4 million households across the UK, managing more than six million tonnes of waste annually.
In its 2016 financial year, Biffa recorded underlying pre-tax profits of £122m on revenue of £927.5m.
Roughly 10% of last year's revenues came from energy production from landfill gas and food waste.
Biffa operates one of the most recognisable fleets of branded vehicles in the country, with 2,500 waste collection trucks, some of which are powered by biofuel from waste cooking oil.
Once part of water company Severn Trent (Other OTC: STRNY - news) , Biffa was spun out into a separate listed business before being taken over by a consortium comprising high street lender HBOS, Global Infrastructure Partners and Montagu Private Equity just before the financial crisis.
In 2008, Biffa was valued at £1.7bn including debt, but a restructuring deal agreed in 2012 wiped out much of the company's borrowings and saw senior lenders take control of the company.
Current customers in the commercial market include J Sainsbury (Other OTC: JSAIY - news) , Royal Mail (LSE: RMG.L - news) and Pret a Manger, while in the domestic rubbish collection sector, Biffa is the second-largest player behind Veolia.
Commenting on the flotation, Biffa's chairman Steve Marshall said the company is "successfully positioned to leverage the multiple opportunities that lie ahead in the UK market."
"The prize is to further enhance the group's leading market positions and build significant value for shareholders," he said.
"We start from a strong base with a robust and resilient business model centred on a well-invested and integrated waste management platform."
