© Reuters. FILE PHOTO: Draslovka Chief Executive Pavel Bruzek Jr poses for a picture at the company’s headquarters in Prague, Czech Republic June 30, 2023. REUTERS/Jan Lopatka/File Photo
By Pablo Mayo Cerqueiro and Jason Hovet
LONDON (Reuters) -Draslovka, the world’s largest producer of sodium cyanide, has been sounding out banks to manage a possible stock market listing as early as next year, three people familiar with the matter told Reuters.
The privately-held Czech group is selecting underwriters for an initial public offering (IPO) after inviting them to pitch over the summer, said the people, who spoke on condition of anonymity.
Plans for an IPO are still at an early stage, and there is no certainty that a deal will happen, the people cautioned.
A company spokesperson said: “As has been previously disclosed, Draslovka’s international growth strategy requires capital, and an IPO is being considered as one of our options. We are in continuous dialogue with our financial advisors.”
Draslovka chief executive Pavel Bruzek Jr. told Reuters in June that the company was working with JPMorgan (NYSE:) to bring in a new investor to secure additional funds and set a valuation ahead of a future listing.
The company continues to work on the capital raise alongside the IPO preparations, one of the people said, adding that it is in no rush to go public.
Draslovka has not yet decided on an IPO venue, and there is a chance it may list its shares abroad, including in London, another person said.
Czech trucking services firm Eurowag previously debuted on the London Stock Exchange in 2021.
Two sources declined to give a potential valuation for Draslovka arguing it is still early days, but one suggested this could be in the billions of dollars by the time it lists.
Founded more than a century ago, Draslovka produces chemicals used in the mining and agricultural industries, including highly toxic sodium cyanide.
The group is controlled by Czech family office BPD Partners and Bruzek’s family. Last year, it sold $150 million of preferred stock to U.S. fund manager Oaktree Capital Management.
The company has embarked on an acquisition spree in a bid to diversify its business and make it greener, recently buying proprietary technology for leaching metals.
The acquisitions boosted Draslovka’s revenue by 286% to $468 million last year, but the dramatic jump was not immediately reflected in its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), which dropped 13% to $77 million.
The company is targeting EBITDA of around $400 million within the next five years.
Its IPO deliberations come as equity markets are warming up again to new entrants following an early wave of listings ahead of the summer lull in Europe and the United States.
