DGL Group launches on the ASX today following successful IPO

DGL Group commenced trading on the ASX and on New Zealand's Exchange (NZX) at 10.30am AEST today. We take closer look.

| More on:
asx share initial public offering or IPO represented by hands holding up sign saying welcome aboard

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

DGL Group Limited (ASX: DGL) commenced trading on the ASX and on New Zealand's Exchange (NZX) at 10.30am AEST today.

DGL Group, founded in 1999 by Simon Henry, manufactures, transports and processes chemicals and hazardous waste. The company's 1,300 customers run from small businesses to international corporations. It has more than 280 employees across its 26 operation sites in Australia and New Zealand.

DGL Group IPO

DGL Group's initial public offering (IPO), underwritten by Bell Potter and Canaccord Genuity, was oversubscribed. The company raised $100 million in all new capital by issuing 100 million new shares at $1.00 per share.

Commenting on the company's IPO and listing, Managing Director, Simon Henry said:

Our initial public offering is a significant milestone for our company, providing it with additional capital to pursue growth opportunities as we continue to further expand our services offered across the chemicals lifecycle and cement DGL's position as a key partner to our customers.

I will continue to hold a significant shareholding in the company, as the largest shareholder, and I am committed to the success and growth of the company. I have not sold shares as part of the IPO process, and all capital raised will be reinvested in the growth of the business.

Henry added that "The growing focus on the environment, recycling and licensed treatment of waste from government, corporates and consumers, has and will continue to benefit our business in the longer-term."

Strong financial track record

DGL Group reported it had delivered strong financial results over the past few years as a private entity.

Total pro forma revenue in the 2020 financial year came in at $180.1 million. The company forecasts this will increase to $209.7 million in the 2022 financial year for a 2-year compound annual growth rate (CAGR) of 7.9%.

DGL Group is also forecasting strong growth in pro forma consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA). That came in at $19.2 million in the 2020 financial year and is expected to reach $29.0 million in the 2022 financial year for a 2-year CAGR of 22.9%.

The company credits revenue growth and ongoing improvements in its EBITDA margins for driving the growth.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX 200 shares can rise 20% to 50%

Let's see which shares are being tipped to rocket from current levels.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors panicked when the latest inflation figures came out today.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Broker Notes

Why Guzman Y Gomez shares are a sell

Goldman Sachs has given its verdict on the burrito seller.

Read more »

A man pulls a shocked expression with mouth wide open as he holds up his laptop.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Mac Copper, Pro Medicus, Web Travel, and Yancoal shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why ALS, Fisher & Paykel Healthcare, IPD, and Predictive Discovery shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Man looking at his grocery receipt, symbolising inflation.
Share Market News

How are ASX 200 investors responding to the latest Aussie inflation numbers?

The ASX 200 was up 0.2% today before the ABS reported the latest inflation figures.

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Broker Notes

Macquarie sees more upside in Telstra shares – What are they worth?

Telstra shares are up 34% over the past year, and Macquarie thinks there's more to come.

Read more »