- Listing would be London's largest in several years
- Company has big expansion plans
- Shares could join FTSE indices
WE Soda, the world’s largest producer of natural soda ash, has announced its intention to list on the London market later this year.
The listing, which will be on the premium segment of the London Stock Exchange, could see the company valued at up to $8.5 billion according to various press reports, making it the largest UK IPO (initial public offering) for some time.
London IPOs declined by 60% in volume terms and 90% in value terms to just £1.6 billion last year after a record number of placings in 2021.
WHO IS WE SODA?
The UK-domiciled company – whose name WE stands for West East – operates two facilities in Turkey producing over five million tonnes of soda ash every year.
Soda ash is derived from a mineral called trona and has a multitude of uses from the production of glass and detergents to pharmaceuticals and food.
WE Soda sells its product to over 100 customers in around 80 countries, and so far has invested $2 billion in its production facilities.
According to the registration document, the firm intends to invest another $5 billion by 2030 to more than double its production, mainly through new growth projects in the US.
‘WE Soda is an extraordinary business supplying essential products to support the energy transition’, says chief executive Alasdair Warren.
‘Today, it is the world’s largest producer of natural soda ash and one of the lowest cost producers of soda ash globally, having developed from a visionary idea to become a global leader in less than 20 years, not only in terms of scale but also in terms of sustainability.’
POTENTIAL OFFER DETAILS
The firm is hoping to list its shares on the premium segment of the London market with a minimum free float of 10% of the capital, which should make it eligible for inclusion in some FTSE UK indices.
The offer will be targeted at institutional investors outside the US and is made up of existing shares coming from the existing shareholders, including Turkish industrial group Ciner which owns more than 10% of WE Soda’s capital.
The use of the proceeds is described as follows: ‘The existing shareholder would repay, directly and indirectly, certain intercompany loans made by WE Soda to affiliates within the Ciner Group from the net proceeds of the potential Offer.
‘The indirect net proceeds received by WE Soda would be used to reduce its net debt by way of repayment of outstanding amounts under certain debt facilities, with the remainder used for general corporate purposes.’
