Dive Brief:
- Advanced Disposal began trading on the New York Stock Exchange under the ticker symbol "ADSW" on Thursday morning.
- The waste company priced the 19,250,000 shares of its common stock at a price of $18.00 per share, which would raise about $350 million. Stocks were priced at $20.83 as of 1 p.m. EST on Thursday.
- Advanced intends to use the proceeds from the shares offered to "repay outstanding borrowings under the Term Loan B portion of its senior secured credit facilities."
Dive Insight:
By finally going public, Advanced Disposal takes a big step in a long-developing goal to secure an IPO. In early February the company announced plans to raise $450 million through 21.4 million shares, and in September the company announced intentions to raise $404.3 million in this IPO. Advanced is valued at about $1.76 billion and touts itself as the country's fourth-largest solid waste company.
Underwriters will have the option to purchase up to an additional 2,887,500 shares of common stock for the offering. These underwriters are Deutsche Bank, Credit Suisse, Barclays, UBS Investment Bank, Merrill Lynch, Macquarie Capital, Morgan Stanley, Stifel, SMBC Nikko and First Analysis Securities.
Just in 2016 alone, Advanced acquired FDS Disposal and Arwood Waste, among others. The move to go public will put the waste company on an even more leveled playing field with competitors like Waste Management, Republic Services and Waste Connections.
