CleanSpace (ASX:CSX) share price rockets 62% higher following IPO

The CleanSpace Holdings Limited (ASX:CSX) share price is rocketing higher on Friday following the completion of its IPO…

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It isn't just Adore Beauty Group Limited (ASX: ABY) shares that have landed on the ASX on Friday following the completion of an IPO.

Also hitting the bourse today has been the CleanSpace Holdings Limited (ASX: CSX) share price. And what a start it has had!

At the time of writing the CleanSpace share price is trading at $7.16. This is a massive 57% higher than its listing price of $4.41.

miniature rocket breaking out of golden egg representing rocketing share price

Image source: Getty Images

The CleanSpace IPO.

CleanSpace is a Sydney-based company which designs, manufactures, and sells workplace respiratory protection equipment (RPE) for healthcare and industrial end markets.

It was founded in 2009 by a team of biomedical engineers and launched its first respirator for use in industry in 2010.

CleanSpace's IPO raised a total of $131.4 million. Though, just $20 million of this was primary capital through the issue of 4.5 million new shares at $4.41 per share.

The remaining $111.4 million is for existing shareholders to realise part of their long-term pre-listing investment in CleanSpace. Approximately 90% of the shares held by existing shareholders will now be escrowed voluntarily with a staged release for up to 23 months.

Based on the 77 million shares on issue and its share price gain today, CleanSpace now has a market capitalisation of $550 million.

What will it spend the proceeds on?

Management notes that the company has funded its operations and growth from shareholders' funds, government loans, and operating cashflow in the past.

It now intends to fund the business and its growth plans partially from the proceeds of the offer and from operating cashflow.

Those plans involve the company growing its current position and markets while positioning for, and exploring, a broad range of additional growth opportunities.

It is also aiming to build on the adoption of CleanSpace products in the healthcare and industrial markets, expand awareness, enter new international markets, and continue to expand and advance its product portfolio.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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