Cyanide producer Draslovka seeks IPO, screens banks.

Cyanide producer Draslovka seeks IPO, screens banks.

Draslovka, World’s Largest Producer of Sodium Cyanide, Considers Stock Market Listing

Draslovka

LONDON, July 27 – Draslovka, the world’s largest producer of sodium cyanide, is exploring the possibility of a stock market listing as early as next year. The privately-held Czech group has been in discussions with banks to manage the potential initial public offering (IPO), according to sources familiar with the matter. Plans for an IPO are still in the early stages, with no guarantee of a deal happening. However, Draslovka’s international growth strategy and capital requirements have prompted the consideration of an IPO. The company is in continuous dialogue with its financial advisors.

Draslovka’s chief executive, Pavel Bruzek Jr., revealed in June that the company was working with JPMorgan to attract a new investor and secure additional funds to support its expansion plans. As part of the IPO preparations, Draslovka is also focusing on raising capital. Despite these developments, the company is not in a rush to go public.

While Draslovka has not yet decided on the IPO venue, there is a possibility that it may choose to list its shares abroad, including in London. This move would follow Czech trucking services firm Eurowag’s successful debut on the London Stock Exchange earlier this year.

Although it is still early to estimate a potential valuation, sources suggest that it could reach billions of dollars by the time Draslovka goes public. Established over a century ago, the company specializes in the production of chemicals used in the mining and agricultural industries, notably sodium cyanide, which is highly toxic.

Draslovka is currently under the control of Czech family office BPD Partners and the Bruzek family. In 2020, the company sold $150 million of preferred stock to U.S. fund manager Oaktree Capital Management.

In recent years, Draslovka has been actively acquiring new businesses to diversify its operations and focus on sustainability. The company has purchased proprietary technology for metal leaching, aiming to make its processes more environmentally friendly.

These acquisitions contributed significantly to Draslovka’s revenue growth, which soared by 286% to $468 million last year. However, adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) declined by 13% to $77 million in the same period. Despite this setback, the company has set a target of achieving an EBITDA of approximately $400 million within the next five years.

Draslovka’s IPO considerations come at a time when equity markets are starting to welcome new entrants, following a wave of listings before the summer. With its industry expertise and ambitious growth plans, the potential IPO presents an exciting opportunity for Draslovka to expand its reach and showcase its innovative solutions for the global market.