Reynolds Consumer Products (Lake Forrest, Illinois / USA; www.reynoldsconsumerproducts.com), a unit of Reynolds Group Holdings (Auckland / New Zealand; www.reynoldsgroupholdings.com), announced that it has launched an initial public offering (IPO) of 47.17m shares. The price is expected to be between USD 25 (EUR 22.67) and USD 28 per share, according to a 21 January 2020 filing made with the US Securities and Exchange Commission. Earlier reports had estimated the IPO could value the company, which is owned by the Rank group – an investment vehicle of New Zealand billionaire Graeme Hart – at around USD 7 bn – see Plasteurope.com of 14.11.2019. Credit Suisse, Goldman Sachs and J.P. Morgan are the lead underwriting banks.

The regulatory filing also said that based on preliminary unaudited estimates, the company expects fourth-quarter to end-December 2019 net revenues to decline to USD 827-843m from USD 907m in the same period in 2018. This is partly due to changes made earlier in 2019, including the exit of certain store branded businesses and lower pricing for some cooking products.

Net income is expected at USD 85-89m from USD 84m and includes the positive impact of favourable material prices, primarily resin and aluminium, and lower net interest expense. These benefits were partially offset by the lower revenues. Adjusted EBITDA is being pencilled in to slide down to USD 209-219m from USD 224m. This is primarily due to the revenue contraction.

For the financial year ending 31 December 2019, the company expects net revenues at USD 3.024-3.040 bn from the year-earlier USD 3.142 bn. Net income is estimated at USD 220-224m from USD 176m.