Australian drilling firm DDH1 Group has launched a $150 million initial public offering valuing the company at $376.5 million.
The group comprises the three brands DDH1 Drilling, Strike Drilling and Ranger Drilling.
Founded in 2006, it operates a fleet of 96 mineral drilling rigs to support drilling programs throughout Australia.
The prospectus indicates the business is expected to deliver $280 million of revenue and $69.3 million EBITDA this financial year.
In that document, chairperson Diane Smith-Gander highlighted the continued growth in the industries DDH1 serves.
“Mineral drilling activity, measured in terms of total metres drilled, has increased annually since FY2015,” she said.
“Meanwhile, the total number of unutilised drill rigs in Australia declined substantially.
“A key focus of the company will be to continue to expand its drilling operations to capitalise on the continued growth in demand for its specialised drilling services.
“The funds raised by this offer, together with existing cash, will be used to pay down borrowings at completion and provide existing shareholders with an opportunity to realise part of their investment in the company.
“Additionally, an ASX listing will provide DDH1 with access to equity capital
markets, give employees an increased opportunity to participate in the ownership of the company and provide a liquid market for shares.”
The prospectus was lodged yesterday (February 10) and the offer opens on February 17.