Redox Limited (ASX: RDX), a leading chemical and ingredients distributor, made its debut on the ASX (Australian Securities Exchange) boards on Monday. However, the Redox share price experienced a 3.5% drop from its listing price, settling at $2.46.
With a presence in over 1,000 specialty and commodity products, Redox is the largest chemicals and ingredients distributor in Australia in terms of revenue. It ranked 13th in the Asia Pacific region and 34th worldwide. In the fiscal year 2022, the company generated $1,081.8 million in revenue. For the fiscal years 2023 and 2024, Redox aims to achieve revenue figures of $1,244.1 million and $1,328.2 million, respectively.
Redox’s products have a wide range of applications in everyday life. They contribute to improved agricultural yields, dental hygiene, and even play a role in the mining sector by aiding in the recovery of critical minerals such as lithium and rare earths.
One notable aspect of Redox’s business model is its lack of individual customer contracts. The company’s largest customer only accounts for approximately 1.8% of total revenue, while the top five customers make up roughly 7% of total revenue. Similarly, no single supplier’s products contribute more than 3.1% of total revenue, with the top five suppliers accounting for no more than 12% of total revenue.
Redox recently completed its initial public offering (IPO) by issuing approximately 157.7 million shares at a price of $2.55 per share. The IPO raised approximately $402 million, resulting in a market capitalization of $1.339 billion for Redox upon listing. The funds generated from the IPO will primarily be used to repay loans and bank debt, as well as for working capital and supporting future growth.
While the Redox share price experienced a decline after the IPO, it will be interesting to see how the company navigates its growth plans and capitalizes on its position as a leading chemicals and ingredients distributor in the Australian market. Investors will likely closely monitor Redox’s performance and future opportunities within the industry.
Note: This article has been written for informational purposes only and should not be considered as financial advice. Please consult with a professional advisor before making any investment decisions.
