Chemicals company DGL ends at a premium on day one

DGL has debuted on the NZX. Photo / Supplied

Shares in Auckland-based chemicals and dangerous goods company DGL closed on the NZX at a 10c or 10 per cent premium to their $1.00 issue price.

The company's initial public offering (IPO), aimed at raising NZ$100 million at NZ$1.00 a share, closed on May 12 and shares were allotted last Tuesday.

DGL said the IPO provided additional capital for the company to pursue growth opportunities, including strategic mergers and acquisitions, as well as investing in assets, plant and equipment.

It would also cover deferred consideration for its acquisition late last year of Chem Pack, a Melbourne company that formulates and packs chemicals, predominantly for agriculture.

The offer documents said DGL is a well-established specialty chemicals and dangerous goods business offering solutions from manufacturing to recycling.

The business employs more than 280 people and operates a network of 26 sites in Australia and New Zealand with about 140,000 tonnes of manufacturing capacity, 126,000 tonnes of chemical storage, and 174,000 tonnes of waste processing capacity.

It was founded by majority shareholder and current chief executive Simon Henry in 1999.