IPO - Zaige Waste Management Holding Group (Aus) Ltd, page-2

Is Chinese. Will pass


Zaige Waste Management Holding Group (Aus) Ltd (ZGZ.ASX) is seeking to raise up to $20 million through the issue of 100 million shares at an issue price of $0.20 per share under an Initial Public Offer and ASX listing.
The company continues to grow its revenue and profits, and generated a NPAT of $14 million in FY16. With a Pre-IPO valuation of $56 million, this translates to a P/E of 4x.
The Company currently operates in two main business segments of scrap steel and waste plastics, generating revenue from both scrap materials and finished products.
Following the ASX listing, Zaige will undergo an expansion into a new business segment that will focus on the recycling of waste tyres.
Zaige has also entered into a Shareholders Agreement with Waste Audit & Consultancy Services Pty Ltd for the provision of waste management consulting services in China and establish a Research and Training program in Australia. The joint venture will be known as Waste Solutions Asia Pacific Pty Ltd.
Through the joint venture the Company intends to establish a research training program in collaboration with an Australian University that shall develop new and innovative technologies for the waste management and recycling industries in China.
Major shareholders in the company have voluntarily escrowed the majority of their holdings for 2 years following admission to the ASX.
The company intends to distribute between 10-20% of NPAT to shareholders by way of unfranked dividends in respect of each financial year.
Zaige is seeking an ASX listing to enable:

• Establishment of the waste tyre recycling business;
• Upgrading the processing equipment of the scrap steel and waste plastics processing segments;
• Establishing the waste management and waste management consulting business with collaboration with XuanAng and Waste Audit, in China and Australia, respectively.