Reynolds Prepares to Sell Up to $1.3 Billion in U.S. IPO

Reynolds Consumer Products Inc., the maker of Reynolds Wrap aluminum foil and Hefty trash bags, set the terms for a proposed U.S. initial public offering that could raise as much as $1.3 billion.

The company plans to offer 47.17 million shares at an estimated price range of…

$25 to $28 apiece, it said in a regulatory filing Tuesday. It also added Academy Securities Inc. to a junior role on the deal, bringing the total number of arrangers to 11.

With the offering, Reynolds will be a rare example of a household goods maker testing the public markets. The company behind the eponymous wrapper released to consumers in 1947 is backed by New Zealand billionaire Graeme Hart’s Rank Group.

For the nine months ended Sept. 30, Reynolds said it had net income of $135 million on revenue of $2.2 billion, according to the filing. It plans to use some of the proceeds to repay debt and for general corporate purposes.

So far it’s been a quiet start to the year for new listings in the U.S., with just $429 million raised through IPOs, according to data compiled by Bloomberg. Chinese e-commerce operator Phoenix Tree Holdings Ltd., one of the first market debuts in 2020, closed flat on its first trading day last week.

In November, Canadian waste management firm GFL Environmental Inc. canceled an IPO that targeted as much as $2.1 billion. That followed the spectacular flop of…

Continue reading at YAHOO! FINANCE

 

 

You May Also Like

About the Author: Admin