Herbert Smith Freehills advised Redox on IPO and listing on Australian Securities Exchange
It is the first to raise more than A$100 million since mid-2022
Herbert Smith Freehills has advised Redox Limited on its Initial Public Offering (IPO), raising A$402 million for a $1.34 billion listing on the Australian Securities Exchange (ASX).
The offer comprised the issue of 94.5 million new shares and the sale by the existing shareholders of 63.2 million shares at an offer price of $2.55 per share. The offer is the largest initial public offering to list on the ASX so far in 2023, and the first to raise more than A$100 million since June 2022.
Philip Hart, the Partner at Herbert Smith Freehills remarked, “We congratulate Redox on its successful IPO in these challenging market conditions. We are pleased that the Herbert Smith Freehills team was able to assist with this significant achievement. It was a pleasure working with the Redox team and we wish them every success as a listed company."
Redox is a leading supplier and distributor of chemicals, ingredients and raw materials. It primarily serves the Australian and New Zealand market and is growing its presence in the US. The business also has operations in Malaysia.
It was founded in 1965 by Roland Coneliano, who utilized his contacts and personal relationships across Europe to deliver sought-after, quality products to the Australian marketplace. His legacy is now carried on by his sons Robert, Renato, and Richard, and grandsons Raimond and Ken.
Along with other family members in the management team, they worked with Roland for several years. Presently, 16 members of the Coneliano family are existing shareholders, representing a majority ownership interest, post the IPO.
Redox undertook the offer to continue positioning itself to protect the long-term interests of all family shareholders through public market investor oversight, ASX governance and capital management regulations, and provide the company with access to public capital markets.
It would help in future growth initiatives, allow existing shareholders to realize part of their investment in the company through the sale of existing shares, repay related party loans and repay existing bank facilities, broaden Redox’s shareholder base, provide it with the benefits of an increased brand profile, and assist the firm in attracting and retaining quality staff.
The Herbert Smith Freehills team was led by Partner Philip Hart. He was supported by Senior Associate Jennie Bian, solicitors David Tilley, Selena Tang, and Rainer Gaunt and graduate Sarah MacDonald.
UBS Securities Australia Limited (UBS) acted as sole global co-ordinator and bookrunner and UBS and Ord Minnett Limited acted as joint lead managers.