Close the Loop (ASX:CLG) shares skyrocket on ASX debut

Highlights

  • Close the Loop Limited trades for the first time on ASX today, following the successful completion of an initial public offering (IPO).
  • On Thursday, the stock CLG closed 49.999% higher at AU$0.300 per share on ASX.
  • Ahead of its public float from the placement of its shares, the Company raised AU$12 million in its IPO.

Australian resource collection and recycling firm, Close the Loop Limited (ASX:CLG), commenced trading its shares on the Australian Securities Exchange (ASX) on 2 December 2021, following the successful completion of an initial public offering (IPO). the stock rose by 55% at one point of its maiden trading session.

CLG IPO:

In its IPO, the Company raised total proceeds of AU$12 million at AU$0.20 per share, valuing the Company at a market capitalisation of AU$65.9 million. Additional AU$3.75 million was raised to enable some long-term Close the Loop shareholders the right to exit and sell their shareholdings into the float via a Sale Co facility. 

Funds raised will be used by the Company to accelerate its operations by upgradation of machinery, installing new processing equipment for plastic washing and separation, scaling automation and funding acquisitions.

The Company got listed on ASX after the merger of two companies-

  • Close the Loop, a resource collection and recycling Company that sorts, processes, provide value-added services and recycles plastics; and
  • OF Packaging, a provider of new, flexible and carton packaging, printing and related sustainability solutions.

Jointly, the combined group offers end‑to‑end solutions to minimise waste to landfills and get recycled content back into new products through operations in Australia, North America, Europe, Vietnam, China, and South Africa. In FY21, Close the Loop Group reported revenue of AU$67.4 million.

Today, the stock CLG closed 49.999% higher at AU$0.300 per share on ASX.

Bottom Line:

Close the Loop is the first Company involved in end-to-end ‘circular economy’ business to list in Australia. It would be interesting to see how the stock performs in near future.

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