UK-based Advanced Innergy Holdings has revised its initial public offering (IPO) plans, reducing the target amount from over $400 million to $150 million. This adjustment follows a decision by shareholders to decrease the number of shares offered for sale in the Australian Securities Exchange (ASX) listing.
The company specializes in manufacturing protective materials for the oil and gas industries, as well as renewable energy projects. According to a recent communication to potential investors from Morgans Corporate and Henslow, Advanced Innergy anticipates an earnings before interest, taxes, depreciation, and amortization (EBITDA) of $56.4 million and an after-tax profit of $24.1 million for the 2025 financial year, up from earlier forecasts of $50.1 million and $22.7 million respectively.
Despite this positive earnings outlook, the company has adjusted its IPO valuation from $400.5 million to around $451.5 million, translating to an eight-times earnings multiple. The reduction in the offering size is attributed to shareholders opting to sell 60 million shares instead of the previously planned 99 million shares. They will retain 272 million shares post-listing, with 259 million of those shares subject to escrow agreements expiring on June 30, 2026, and the same date in the following year.
Revised Financial Strategy and Future Projections
The updated terms of the IPO have decreased Advanced Innergy’s free float to 38.8 percent from 52.1 percent. The pathfinder prospectus further extends financial forecasts to the 2026 financial year, predicting an EBITDA of $62.3 million, which represents a 7.6-times enterprise value (EV) multiple.
Bids for the IPO are set to conclude at 12:00 PM on Friday. The company’s executives, including Chief Executive Andrew Bennion, Chief Technology Officer Simon Shepherd, and Chief Financial Officer Andy King, are now aiming for a listing on Bridge Street in October, a slight delay from the original target of August.
Funding Allocation and Company Background
A term sheet reviewed by industry analysts indicates that more than half of the proceeds from the $150 million IPO, approximately $78.8 million, will be allocated to Advanced Innergy’s mergers and acquisitions strategy. An estimated $60 million will fund the selldown, which includes paying out preferred shares in the UK, while $11.2 million will cover the costs associated with the listing.
Founded in 2007 and headquartered in Gloucester, Advanced Innergy operates globally, with projects across the United States, Dubai, South Korea, and Brazil. Its diverse product range includes buoyancy devices for subsea pipes, fire protection foam, technology to safeguard power cables from over-bending, materials to shield battery components from fire, and risers for pumping cold seawater from great depths to cool equipment.
The IPO follows an unsuccessful attempt to merge with ASX-listed Matrix Composites and Engineering Limited, marking a pivotal moment for the company as it seeks to expand its operations and enhance its financial standing in the competitive materials manufacturing sector.
