WE Soda, the world’s largest producer of natural soda ash, announced plans to list its shares on the London Stock Exchange (LSE) today. The decision is seen as a boost to the Lond initial public offer (IPO) market, which has not seen much activity since last year.
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The company, headquartered in the UK, produces soda ash for various uses, including for manufacturing glass. It is considering applying to have its shares admitted to trade on the London Stock Exchange’s (LSE’s) premium segment.
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The actual value of the IPO and the pricing of each share have not been disclosed, but some media reports indicate that the company shall be valued at about $8.5 billion. Furthermore, the IPO is set to include the sale of shares held by Turkish company the Ciner Group, representing at least 10% of its share capital.
The company is working with multiple investment banks, including Goldman Sachs, Deutsche Bank, BNP Paribas, Morgan Stanley, JPMorgan, MUFG, Liberum and Numis, on the potential transaction, which is a smart move since each bank can tap into its network of investors to make the capital raise a reality.
The IPO could not have come at a better time for the LSE, given that the European IPO market has been relatively quiet recently. High interest rates and record-high inflation killed most companies’ appetite for IPOs. As a result, there was an almost near freeze in the IPO market last year.
The IPO boosted the London Stock Exchange (LSE) as an attractive listing destination after Brexit. However, there have also been some high-profile delistings from the LSE by local companies that have chosen to be listed in overseas markets, like ARM, the chip manufacturer based in Cambridge.
Last year, Londo recorded a 90% decline in the funds raised via IPOs, and this year, Admiral Acquisition (LON: ADMR), a special purpose acquisition company (SPAC), raised $550 million via a London IPO.
In April, we had another listing after Melrose Industries spun off the automotive division of the British Engineering firm known as GKN under the name Dowlais (LON: DWL).
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