Queensland-based waste-to-energy company LGI is looking to raise about $25 million in investments with its Initial Public Offering (IPO).
LGI’s core businesses include installing power generation systems on landfill sites and selling power into the national electricity market, and operating biogas extraction systems under contracts.
It operates at the convergence of the waste and clean energy industries. It also collaborates with landfill owners to help solve the methane emission problem where we operate.
Founded by Adam Bloomer, LGI aims to provide biogas solutions to landfill sites in regional Australia. The company is chaired by Indian-Australian Vik Bansal who was the CEO of Cleanaway (2015-2021) and is presently CEO and Executive Director of InfraBuild. Under Bansal, an electrical engineer with an MBA, LGI recorded $15.2 million in revenue and $6.6 million EBITDA in the financial year 2021. During Bansal’s tenure, Cleanaway’s shares had risen 300 per cent but they slumped 8.5 per cent on the news of his departure amidst controversy in 2021.
As per reports in AFR, LGI is meeting with Sydney and Melbourne-based fund managers for its IPO. $18 million from the $25 million investments raised will go towards financing new projects. Further, the deal’s expected to value LGI at $130 million on a market capitalisation basis.
At present, LGI has around 30 projects across Queensland, New South Wales, and the Australian Capital Territory. With the new investment, LGI plans to build more including at Toowoomba (Qld) and Nowra (NSW).
As per the company, in the last three years, LGI has grown its return on invested capital by up to 20% per annum. LGI tried to list earlier this year but postponed it due to Australian market conditions. It is now looking forward to launching a prospectus formally outlining the deal early next week.