Infragreen opens 15% higher after ASX IPO
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The news: Infrastructure group Infragreen is trading 15% higher after it completed a $40 million float on the ASX.
Infragreen chief executive Declan Sherman told Capital Brief the initial public offering was to help pay off a debt facility and to fund future acquisitions and investments in energy and waste management businesses.
The numbers: Infragreen shares were up 15% to $1.15 shortly after floating at 11am.
Infragreen sold 40 million shares at $1 per share through its initial public offering, which puts the company’s value at about $220 million. Of the roughly 220 million shares on issue, there are more than 48 million free-float shares.
The company has previously raised $105 million through private equity raising, Sherman said.
The context: Most of the funding will be used to pay off the remaining $30 million of a $40 million debt facility with the family office of Queensland billionaire John van Lieshout.
While there is no urgency to pay off the loan, Sherman said he wanted to “reset the balance sheet to have no gearing” so that Infragreen could more readily access further debt facilities and raise more capital in the future.
Remaining money will be used for future acquisitions and investments in the energy and waste management sectors that will be announced by the end of financial year 2026.
While he shied away from naming particular investments that are close to fruition, he flagged that Infragreen had a “good relationship” with the Clean Energy Finance Corporation.
Sherman said he has looked at opportunities to co-invest with the government's green bank in new portfolio companies in the battery sector. However, these were not near-term prospects.
What they said: “The sectors we’re in are performing incredibly strongly, notwithstanding broader economic concerns of productivity [or geopolitics], so our businesses are positioned to grow,” Sherman said.
