Biffa set to float next week after cutting price to save IPO from scrapheap
Biffa is expected to float on the London Stock Exchange next Thursday after it cut the price of its initial public offering (IPO).
The waste disposal company has managed to avoid pulling its IPO after drumming up enough City interest on Friday.
City PM understands Biffa is set to announce the flotation is going ahead on Monday.
Read more: Biffa cuts IPO pricing in bid to keep float away from the scrapheap
It is expected to list on the London Stock Exchange on Thursday with a share price of 180p.
This was reduced from 220p after the company failed to attract enough City interest.
It means Biffa will raise just over £210m from the float, below the initial target of £270m, valuing the company at around £450m.
A source close to Biffa told City PM that investors were keen on the company but required a lower price because of the current state of the market.
Read more: Float or sink? London's IPO market is giving off mixed signals
Biffa pushed through the deal at the end of a week in which Pure Gym and TI Fluid Systems pulled their IPO plans.
In more bad news for the London flotation market, it emerged yesterday that Mountain Warehouse has withdrawn its plans for an IPO.
Meanwhile, Krispy Kreme’s intended float was ruled out earlier this month when the UK arm was sold to the US business instead.
Also this week, store card maker NewDay was sold to private equity houses Cinven and CVC Capital Partners after its IPO plans were dropped following the EU referendum.