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Dynamic Drill and Blast looks for further growth with ASX IPO

Specialist drill and blast services supplier, Dynamic Drill and Blast Holdings, is looking for further growth with a plan to raise A$5 million ($3.5 million) and seek admission to the Australian Securities Exchange official list.

The Perth, Western Australia-based company has established itself as a contractor able to supply everything from large production blasts to vibration-sensitive, close-proximity civil work, it said.

Associated with strong and ongoing growth in the mining and civil sectors, Dynamic says it has seen a surge in project opportunities and plans to use funds from the initial public offering (IPO) to grow its fleet and provide working capital to tackle a strong tendering pipeline.

The company was founded in 2011 and, since 2018, has been on a rapid growth path following a strengthening of the balance sheet and the introduction of new strategic investors, including current Executive Director, Matt Freedman, a major shareholder.

Revenue has grown from A$12.97 million in the 2018 financial year to A$19.1 million in the 2019 financial year. Along the way, it has attracted a strong Tier One mining client base, and is undertaking work on projects owned by Rio Tinto, Fortescue Metals Group and Galaxy Resources, it said.

Dynamic says it is currently operating at three West Australian sites, one of which is nearing completion, and has developed a strong pipeline of tendering opportunities.

“Importantly, a number of the tendered opportunities are for medium-to-long term contracts which, if awarded to Dynamic, would enable continued growth of a steady/underlying revenue stream,” the company said.

Dynamic’s management and board comes with proven and diverse skills, according to the company.

Mark Davis, Managing Director of Dynamic, was a founding member and brings over 25 years’ experience in the mining services sector.

Dynamic has also recently appointed Garret Dixon as Non-Executive Chairman. His recent roles include Executive Vice President at Alcoa Corp and President Alcoa Bauxite. He has held previous roles as Executive General Manager for civil construction and contract mining group Henry Walker Eltin Ltd, Managing Director of logistics company Mitchell Corp, and Managing Director and CEO of ASX-listed Gindalbie Metals.

JP Equity Partners has been appointed Lead Manager to the IPO, with the company aiming to hit the ASX boards around August 20.

Davis said the time was right to list on the ASX and the IPO will provide the company with the capital required to secure project opportunities and continue its rapid growth push.

“It has been an exciting period for Dynamic,” he said. “As a founding member, I have seen first-hand the incredible transformation of the business since 2018. We are now preparing ourselves for the next phase of growth.

“The company is well-supported by a Tier One client base, which continues to grow with the pipeline of tendered contracts.

“It’s an exciting time in the Western Australian mining sector with strong market dynamics in both gold and iron ore. At completion of the IPO, Dynamic will be well-positioned to service these growing and important sectors. There is also the potential for strong growth in the civil sector with infrastructure projects coming out of increased government spending, post-COVID-19.”

He added: “I would like to take the time to thank Matt Freedman, who has played a critical role in growing the business to where we stand today and all our employees who contribute on daily basis and are essential to the day to day success of Dynamic.

“I would also like to welcome Garret Dixon as Non-Executive Chairman. To be able to attract someone of Garret’s calibre is a testament to where Dynamic is heading as business.

“Lastly, we could not be here today without out investor base. Over the past 24 months, Dynamic has been fortunate enough to welcome a number of key strategic investors with significant contracting and capital markets experience and I look forward to delivering long-term value to these investors and to the shareholders who join our register, once we hit the ASX boards.”