04/05/2021 - 15:30

MLG makes strong ASX debut

04/05/2021 - 15:30

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Kalgoorlie-based MLG Oz has become the latest mining services provider to list on the ASX, with its share price closing up 27 per cent.

MLG makes strong ASX debut
Murray Leahy says MLG's listing creates further opportunities to grow the business.

Kalgoorlie-based MLG Oz has become the latest mining services provider to list on the ASX, with its share price closing up 27 per cent.

It follows a $70.7 million initial public offering, which was priced at $1 per share and jointly led by Bell Potter Securities and Morgans Corporate. Ashanti Capital was co-manager to the IPO.

MLG began trading on Tuesday with a market capitalisation of $145.7 million.

Its shares opened at $1.35 before reaching a high of $1.38 and closing at $1.27, giving the company a current market cap of about $185 million.

Experienced mining executives Chris Ellison and Bill Beament emerged as top 20 shareholders, taking 0.69 per cent and 0.13 per cent stakes in in MLG, respectively.

Founded by managing director and majority shareholder Murray Leahy in 2002, MLG provides integrated mine site services and logistics to the mining and civil construction industries, with operations spanning 29 sites throughout Western Australia and the Northern Territory.

Its services include mine site and baulk haulage services, crushing and screening, and export logistics.

MLG says it has also established a new revenue stream through its ‘build, own, operate’ model, with a major client being Fortescue Metals Group.

On Tuesday, MLG said it had experienced increasing demand for its services and expected to generate revenue of about $242 million in the current financial year.

Mr Leahy said MLG will use the IPO funds to reduce its debt and support its working capital needs.

“This will provide us with the capability to continue to obtain new equipment and expand our operations to support our clients and develop new client relationships,” he said.

“We are a long-term relationship business, which prides itself on delivery for our clients, and having the capacity to support them will help position us well for the future.”

Mr Leahy said listing on the ASX created opportunities to grow the business further.

“Our employees and clients have helped us grow the business successfully for over 20 years,” he said.

“As the only shareholder until this point, I am pleased to have new shareholders join me in expanding the business and am excited about the opportunities in front of us.”

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