Biffa raises £262m in IPO after cutting offer price

Waste disposal company Biffa has cut the price of its London flotation as it returns to the market after eight years.

The company confirmed on Monday that it has slashed its offer price to 180p a share, down from the original range of 220p-270p.

At the new price, Biffa has attracted enough investment to raise total gross proceeds of roughly £262m, plus a possible £11m over-allotment, and will have a market capitalisation £450m.

The new funds will be used to pare debts and pay the HMRC an outstanding claim.

"The company is well placed to exploit structural changes in the UK waste market, leveraging its diversified and integrated operations right across the country," chief executive Ian Wakelin.

"Biffa will continue its disciplined approach to capital allocation and to capturing further operational efficiencies by optimising its systems and processes.

"We welcome our new shareholders and look forward with confidence to the next stage in the development of Biffa as a public company."