Reynolds Consumer Products, a subsidiary of New Zealand-based packaging company Reynolds Group Holdings currently under US firm Alcoa, is reportedly set o launch its initial public offering (IPO) in the US. The maker of the popular Reynolds Wrap aluminum foil and Hefty-branded trash bags is aiming to raise as much as $1.3 billion in its US IPO.
According to its regulatory filing on Tuesday, Reynolds plans to sell 47.17 million shares during its IPO. Pricing has not yet been officially determined, but the company estimates that it could be priced around $25 to $28 per share. Reynolds is planning to list its shares on the NASDAQ under the ticker symbol "REYN."
The company also revealed that it will have a total of 11 underwriters for its IPO, including Academy Securities, which was recently added to the roster. The other banks that will be assisting in the company's listing include Credit Suisse Group AG, JPMorgan Chase & Co, and Goldman Sachs Group.
The company, whose roots can be traced to the former Reynolds Metals Company, is currently one of the largest aluminum companies in the United States. Reynolds pioneered the various alternative uses of aluminum, including its eponymous aluminum foil wrapper that was released to consumers back in 1947. The company is currently being backed by Rank Group, a privately held investment company owned by New Zealand billionaire Graeme Hart.
The Reynolds Metals Company was officially acquired by US Industrial firm Alcoa Corporation in 2000. After the acquisition, Alcoa shed the company's non-metals packaging and printing businesses but retained the Reynolds consumer brand and products. The Reynolds brand under Alcoa still remains to the world's top provider of household and cooking products.
For the first three quarters of 2019, Reynolds reported a net income of over $135 million on revenues of around $2.2 billion. The company has continued to grow over the years, reporting relatively good profit growths. According to the company, the proceeds from its IPO will mostly be used to reduce its debts, while the rest will be used for general corporate purposes.
If Reynolds' planned listing does push through, it could serve to reinvigorate the US' equities market, which has so far been relatively quiet this year. According to official data, US stock markets only managed to raise around $429 million through IPOs since the start of the year. A good number of those listed in the US were Chinese companies. Last week, three out of the four companies that launched their IPOs in the US were China-based firms.
