Biffa cuts flotation share price to 180p
Waste management firm Biffa has slashed the price of its stock market flotation, but will press ahead with the listing following fears that it could be binned.
The company said on Monday that it will pull the trigger on an initial public offering (IPO) which will see it raise £262 million.
However, the offer price has been cut from the 220p-270p per share range to 180p after investors got the jitters about a volatile listings market.
The float values Biffa at £450 million.
Chief executive Ian Wakelin said: "A return to the London Stock Exchange is a significant milestone for Biffa and a testament to the hard work of all our staff. This listing is an endorsement of Biffa's business model, strategy, track record and prospects."
Biffa - founded more than 100 years ago - is the second largest waste management group in the UK, serving 2.4 million households and employing more than 7,000 staff.
It believes the UK waste market will continue to grow rapidly - by around 5% a year - forecasting it will be worth £18.5 billion by 2020, driven by the country's rising population and household growth.
Biffa wants to tap into the market further and snap up smaller players, having already made 20 acquisitions worth £53.4 million since December 2013.
Mr Wakelin added: "The company is well-placed to exploit structural changes in the UK waste market, leveraging its diversified and integrated operations right across the country. Biffa will continue its disciplined approach to capital allocation and to capturing further operational efficiencies by optimising its systems and processes.
"We welcome our new shareholders and look forward with confidence to the next stage in the development of Biffa as a public company."
Unconditional dealings in the company's shares will begin on October 20.