Anaergia, a company that converts organic waste into water and fertilizer, has filed for a $200-million initial public offering on the Toronto Stock Exchange.
Founded in 2007, Anaergia’s mission is to eliminate greenhouse gases by processing organic waste into “carbon-negative” clean water, fertilizer and renewable natural gas, using proprietary technology. The Burlington, Ont.-based company, has more than 200 active and pending patents, according to its prospectus.
Anaergia’s technology is used at more than 230 waste processing facilities, mostly in Asia, Europe and North America. The company plans to sell its shares at a price between $17 and $20, and the proceeds will be used to build its own biogas facilities and expand further into Asian markets.
The company generated $3.1-million in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in 2020 on $128-million in revenue, after posting a loss of $3.5-million in 2019 on $89.7-million in revenue. It had a loss of $7.5-million on $63.5-million in revenue in 2018.
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Anaergia sees potential for its adjusted EBITDA to soar to between $50-million and $60-million in 2022, and to between $85-million and $105-million in 2023.
“With our differentiated set of solutions that divert organic waste away from landfill with no requirement to change consumer behaviour, we are uniquely positioned to capitalize on this global opportunity and to play an important role in decarbonizing the planet,” the company said in its prospectus.
Anaergia has a 51-per-cent stake in California’s Rialto Bioenergy Facility, which it says is North America’s largest organic waste processing facility. It is building another facility in California, and three in Italy.
TD Securities Inc. and Barclays Capital Canada Inc. are the lead underwriters on the IPO. CIBC World Markets Inc., Scotia Capital Inc., National Bank Financial Inc., Raymond James Ltd., Roth Canada, ULC and Canaccord Genuity Corp. are also in the syndicate.
Also Tuesday, Canadian pet store chain Pet Valu filed preliminary documents for an IPO on the TSX. The company, which has 609 stores and 1.4 million members in its loyalty program, did not state how much money it hopes to raise, or a price range for its shares.
RBC Dominion Securities Inc., Barclays Capital Canada and CIBC World Markets Inc. are its lead underwriters.
Pet Valu, which plans to expand its brick-and-mortar presence, says it will use revenue from the IPO to help repay about $700-million of debt from two credit facilities it received in 2016. Concurrent with the IPO, the company will borrow $485-million in a new credit agreement.
Pet Valu’s revenue and adjusted EBITDA have grown steadily in recent years. In the company’s fiscal 2020, it generated $144-million in adjusted EBITDA on $648-million in revenue.
Anaergia and Pet Valu join several other IPOs in progress in a busy spring for new issues, with others including LMPG Inc., Q4 Inc. and VerticalScope.
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