Herbert Smith Freehills advises Redox Limited on $402 million initial public offering and listing on ASX

Herbert Smith Freehills is proud to have advised Redox Limited (Redox) on its initial public offering (the Offer), raising A$402 million for a $1.34 billion listing on the Australian Securities Exchange (ASX). 

The Offer comprised the issue of 94.5 million new shares and sale by the existing shareholders of 63.2 million shares at an offer price of $2.55 per share. The Offer is the largest initial public offering to list on the ASX so far in 2023, and the first to raise more than A$100 million since June 2022.

Redox Limited is a leading supplier and distributor of chemicals, ingredients and raw materials. Currently, Redox primarily serves the Australian and New Zealand market, and is growing its presence in the US. The business also has operations in Malaysia.

Redox was founded in 1965 by Roland Coneliano, who utilised his contacts and personal relationships across Europe to deliver sought-after, quality products to the Australian marketplace. Roland’s legacy is now carried on by his sons Robert, Renato and Richard, and grandsons Raimond and Ken who, along with other family members in the management team, worked alongside Roland for many years. Today, 16 members of the Coneliano family are existing shareholders, together representing a majority ownership interest post the initial public offering.

Redox undertook the Offer to continue to position itself for success over the long term, protect the long-term interests of all family shareholders through public market investor oversight, ASX governance and capital management regulations, provide Redox with access to public capital markets to help fund potential future growth initiatives, allow existing shareholders to realise part of their investment in the company through the sale of existing shares, repay related party loans and repay existing bank facilities, broaden Redox’s shareholder base, provide Redox with the benefits of an increased brand profile, and assist Redox in attracting and retaining quality staff.

The Herbert Smith Freehills team was led by partner Philip Hart and supported by senior associate Jennie Bian, solicitors David Tilley, Selena Tang and Rainer Gaunt, and graduate Sarah MacDonald.

Philip Hart said, “We congratulate Redox on its successful IPO in these challenging market conditions, and we are very pleased that the Herbert Smith Freehills team was able to assist on this significant achievement. It was a pleasure working with the Redox team and we wish them every success as a listed company".

UBS Securities Australia Limited (UBS) acted as sole global co-ordinator and bookrunner to the Offer. UBS and Ord Minnett Limited acted as joint lead managers to the Offer.

This transaction is a testament to Herbert Smith Freehills’ market-leading reputation for complex equity capital markets transactions.