MLG Oz (ASX:MLG) lists on ASX, shares shoot up

• Supply chain solution company MLG Oz (MLG) has listed on the ASX after completing a $70.7 million initial public offering (IPO)
• Headquartered in Kalgoorlie, MLG works with gold, iron ore and other base metal clients in Western Australia and the Northern Territory
• The IPO was made up of new shares and a partial founder sell-down at $1 each, attracting retail, professional and institutional investors
• Proceeds from the IPO will be used to reduce debt and for several growth initiatives such as the purchase of new equipment, expanding operations and developing new client relationships
• In the prospectus, MLG forecast revenue of $241.6 million and earnings of $41 million in the 2021 financial year
• Shares have climbed 32.5 per cent to $1.33

MLG Oz (MLG) has listed on the ASX after completing a $70.7 million initial public offering (IPO).

Headquartered in Kalgoorlie, the supply chain solution company works with gold, iron ore and other base metal clients in Western Australia and the Northern Territory.

The company’s services span bulk haulage, crushing and screening, aggregate and sand supplies, and export logistics. It also has a dedicated facility at the Esperance Port, 925 heavy vehicles and support equipment, and fully owned quarries near mining centres throughout WA.

Under the IPO, MLG raised $50 million from the issue of new shares and $20.7 million from a partial founder sell down at $1 per share.

Founder and Managing Director Murray Lahy continues to hold a 50.1 per cent interest in the company. He welcomed new retail, professional and institutional shareholders and thanked them for their support.

“Our employees and clients have helped us grow this business successfully for over 20 years. As the only shareholder until this point, I am pleased to have new shareholders join me in expanding the business and am excited about the opportunities in front of us.”

“The additional capital raised through the IPO will initially be used to reduce the Company’s debt and support the working capital needs associated with our ongoing growth. This will provide us with the capability to continue to obtain new equipment and expand our operations to support our clients and develop new client relationships,” he explained.

In the prospectus, MLG forecast revenue of $241.6 million and pro-forma earnings before interest, tax, depreciation and amortization of $41 million in the 2021 financial year.

Shares have climbed 32.5 per cent to $1.33 at 2:35 pm AEST.