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Reynolds wrap maker backed by Rank Group files for US IPO

[NEW YORK] Reynolds Consumer Products Inc, the maker of Reynolds Wrap aluminum foil and Hefty trash bags, has filed for a US initial public offering.

The company in its filing Friday listed the size of the offering as US$100 million, a placeholder used to calculate fees that will likely change. The number of shares and the price range for them haven't been decided yet, the company said in a statement.

The company, backed by New Zealand billionaire Graeme Hart's Rank Group, said in a statement in September that it had confidentially submitted its IPO registration to the US Securities and Exchange Commission.

Reynolds planned to seek a valuation of US$7 billion in the offering, people with knowledge of the matter said in October. For the nine months ended Sept 30, Reynolds said it had net income of US$135 million on revenue of US$2.2 billion, according to Friday's filing.

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Companies have raised US$2.93 billion in 31 IPOs on US exchanges so far this quarter, compared with 29 raising US$5.78 billion during the same period last year, according to data compiled by Bloomberg.

Canadian waste management firm GFL Environmental Inc this month cancelled an IPO that targeted a listing of as much as US$2.1 billion. That followed the spectacular flop of WeWork's share-sale plans, which were officially withdrawn in late September.

The Reynolds offering is being led by Credit Suisse Group AG, Goldman Sachs Group Inc and JPMorgan Chase & Co. The company, based in Lake Forest, Illinois, plans to list its shares on Nasdaq under the symbol REYN, according to the filing.