Global Water Intelligence (GWI)

AquaVenture seeks $500m valuation through IPO

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Source: Global Water Intelligence (GWI)

The $500 million valuation put on AquaVenture Holdings – which last Friday set an indicative price range of $18-20 for its upcoming initial public offering – may appear a little rich, given that the company generated an operating loss of $30 million on revenues of $100 million last year.

Its growth-through-acquisition strategy has seen it bulk up the Quench point-of-use business, while the Seven Seas division has been acquiring brownfield desalination BOTs and refurbishing them in order to realise efficiency gains.

It is already starting to suffer some degree of indigestion, however. In the second half of 2015, it was forced to record a $27.4 million goodwill impairment relating to the Quench unit, and its push into Latin America is reliant on the money it raises through the IPO (it wants to spend $45 million buying a 2.7MGD (10,200m3/d) reverse osmosis plant serving a Peruvian phosphate mine run by Brazilian company Vale).

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