Close the Loop, an end-to-end solutions provider from design and manufacturing, through to collection and recycling of products, has announced that trading of its shares on the Australian Securities Exchange (ASX) has commenced, under the code ‘CLG’ following the completion of an initial public offering (IPO).
The IPO raised gross proceeds of $12 million at a price of $0.20 per share, valuing the company at a market capitalisation of $65.9 million. A further $3.75 million was raised to allow some long-term Close the Loop shareholders the ability to exit and sell their shareholdings into the float through a Sale Co facility. The IPO introduced new institutional and sophisticated shareholders who can support Close the Loop through its next phase of growth. Funds raised will enable the company to scale its operations by upgrading machinery, installing new processing equipment for plastic washing and separation, increasing automation and funding acquisitions.
Close the Loop is listing following the merger of two companies:
- Close the Loop, a resource collection and recycling company that sorts, processes, provides value-added services and recycles plastics; and
- O F Packaging, a provider of innovative, flexible and carton packaging, printing and related sustainability solutions.
Together the combined group provides end‑to‑end solutions for reducing waste to landfill and getting recycled content back into new products through operations in Australia, North America, Europe, Vietnam, China and South Africa. In FY21 Close the Loop Group reported revenue of $67.4 million and forecasts revenue to grow to $73.9 million in FY22.
“We are delighted with the outcome of the IPO and the strong support shown by our new institutional and sophisticated investors. Our listing today on the ASX marks not just an important milestone for Close the Loop as we progress our next phase of growth, but the Company has become the first end-to-end ‘circular economy’ business to list in Australia. I would like to thank our existing shareholders for their ongoing support and warmly welcome our new investors to share in this exciting journey,” said company chairman Greg Toll.
“Today Close the Loop becomes Australia’s most advanced vertically integrated design, manufacturing, collection and recycling company, that reduces waste to landfill and gets recycled content back into new products. Our award-winning packaging products and regenerative uses for plastics help companies stay ahead of evolving recycling guidelines and regulations,” said group chief executive officer Joe Foster.
“With only two per cent of plastic packaging globally currently being recycled, customers need more effective and efficient recovery and take back or re-use of valuable product resources to increase their sustainability footprint. Coupled with the strong regulatory changes stipulated by governments around the world, we are excited about Close the Loop’s prospects and our ability to benefit from these key long-term global trends.”