May 28, 2014 / 12:01 PM / 4 years ago

Ardagh IPO due in 2015

LONDON, May 28 (IFR) - Irish bottling company Ardagh has revived its plans to complete an IPO, though not until the second half of 2015.

The company has been exploring equity funding options before concluding that an IPO is the best option. Ardagh said in March that it was exploring a US$500m pre-IPO convertible bond issuance that would have been privately placed and include mandatory conversion to qualify the bonds as equity rather than debt.

The company planned to complete an IPO in the US in the third quarter of 2011 but postponed the transaction that August. The acquisitive company reiterated its commitment to a US float a year later when it acquired US-based Anchor Glass for US$880m.

At the time Citigroup was attached to the IPO having provided funding for the acquisition.

The situation is similar now with Ardagh committing to an IPO on the back of another acquisition, in this case that of Verallia North America from Saint-Gobain in April, where Citigroup was again sole lead on both the loan and bond financings. Citigroup was also expected to lead the pre-IPO convertible.

A key peer is glass container maker Owens-Illinois. O-I trades on a historic P/E multiple of 25 and EV/Ebitda of 9.20.

For the 12 months ended March 31 2014, Ardagh achieved Ebitda of 636m, pointing to an enterprise value of nearly 6bn if it priced flat to where O-I presently trades. The same period shows a loss of 252m.

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