Waste company Biffa cuts share price by third in stock market re-listing

UK waste management company Biffa has slashed its stock prices, selling its shares at 180p per share in its initial public offering (IPO).

The price, according to BBC, is significantly lower than the expected price range of 220-270p and equates to a market capitalisation of £450 million (€498m).

Despite its status as a waste management business, Biffa also works in converting waste to bioenergy.

Biffa has applied for admission of its shares to the premium listing segment of the Official List of the FCA and to trading on the London Stock Exchange’s main market for listed securities.

"A return to the London Stock Exchange is a significant milestone for Biffa,” said Ian Wakelin, the company’s CEO.

The company has not been listed on the stock market since 2008, and now expects the relisting to bring total gross proceed of £262 million.

But the flotation comes at a challenging time for investors due to worries over recent instability of the pound and concerns about the fine print of the UK’s exit from the EU.

Several other companies have postponed or cancelled their flotation plants, citing “market volatility” and “uncertain market conditions”.

Biffa plans to use the proceeds from the re-listing to pay back a part of the company’s debts and pay HMRC in connection to a dispute over landfill tax.