Ambipar (AMBP3) lists subsidiary on NYSE and targets growth in North America

Ambipar Response is listed on the NYSE with an estimated market value of R$ 2.6 billion, while Ambipar is valued at R$ 2.5 billion on B3.

Ambipar Response, a company controlled by Ambipar (AMBP3), officially debuted on Thursday (9) on the New York Stock Exchange, aiming to consolidate its expansion in North America. The operation, announced in July last year, raised US$ 174 million (R$ 895.7 million considering Thursday’s exchange rate), and the funds will be used for further acquisitions.

Ambipar Response is currently trading with a market cap of around US$ 510 million (R$ 2.6 billion). With 70.8% of the issued shares and 96% of the voting capital of the subsidiary, only Ambipar’s stake is worth approximately R$ 1.86 billion – currently, the company is valued at R$ 2.5 billion on B3.

“The investor holding our shares is getting one of the businesses ‘for free.’ So, I believe they will see our value. We are also focused on explaining more about our business model to the market,” says Thiago Costa, CFO of Ambipar, to InfoMoney.

Costa also highlights that the company’s business model, focused on environmental, chemical, and biological crisis management, has an addressable market in North America of at least US$ 14 billion – in the region, Response generated gross revenue of R$ 440 million from January to September 2022, equivalent to approximately US$ 85.5 million.

“The listing in New York is a milestone for the company and brings us visibility. We are part of a large market, which opens up new funding possibilities and helps unlock value for Ambipar [on B3],” reinforces the executive.

With the operation completed, the CFO believes that a natural arbitrage will occur between the market valuation of Ambipar Response on NYSE and its parent company, Ambipar, on B3.

Listing process began in 2022

To enable entry on the NYSE, Ambipar entered into an agreement with HPX Corp, a SPAC (Special Purpose Acquisition Company, common in the United States) that was already listed on the American exchange, in July 2022.

Along with the agreement, there was a firm commitment of a US$ 168 million investment, with resources from Ambipar itself and a group of investors led by Opportunity, including Constellation and XP Asset. In total, the operation moved forward with an additional US$ 6 million, at a time when investors were averse to investing in new companies on the stock exchange.

Even before completing the listing process, Ambipar Response made two acquisitions that helped double its operation’s size.

Between August and September, the company acquired Canadian Ridgeline and American Witt O’Briens (WOB), strengthening its presence in North America and Europe and enabling entry into Asia and Oceania.

“These are businesses that would have happened even before the listing. So, the investor who entered the capitalization is getting this growth ‘for free,'” Costa adds.

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