WE Soda’s listing could be the biggest in 2023 for the London Stock Exchange
UK-based WE Soda is the world’s leading producer of soda ash and sodium bicarbonate. According to an official statement, the company is planning an initial public offering on the London Stock Exchange. The IPO is expected to raise US$800 million.
WE Soda intends to conduct a premium listing. The offer price and number of shares will be announced after the company has received all investor bids. The IPO will provide an opportunity to use the proceeds to repay loans. Approximately US$500 million of the planned US$800 million will be used for this purpose. The remaining US$300 million will repay corporate expenses. WE Soda’s listing could be the largest on the London Stock Exchange since the flotation of a unit of pharmaceutical group GSK.
The UK stock market raised a total of $600 million in 2023, a low figure for the country. The decline in IPO interest is due to the global economic slowdown and rising inflation in the kingdom. As a result, investors prefer to invest in more stable assets than equities. In general, experts note that the capitalisation of the UK equity sector has fallen by 8% this year to US$3 trillion. Therefore, experts hope that WE Soda’s listing will somehow increase activity in the market.
At least 10% of the company’s shares will be in free float, with around 15% sold through an oversubscription mechanism. According to the Financial Times, WE Soda could have a value of US$7.5 billion. The company has two major operations in Turkey. It also owns its own port, which provides improved logistics for raw material deliveries. In 2022, WE Soda had revenues of US$1.8m, compared to US$892m in 2021.
WE Soda activities
The company has been on the market since 2009, becoming the largest sodium carbonate producer. It is part of the Ciner industrial conglomerate. WE Soda produces more than 5 million tonnes of products annually, exported to 80 countries. In 2021, the company sold a 60% stake in its US business.
Sodium carbonate is one of the components used in the production of batteries for electric vehicles. It is also used in the manufacture of glass and various detergents. Although the company has its head office in London, its owners are the billionaire Turkish family of Turgay and Dideme Çiner.
BNP Paribas, JPMorgan, Deutsche Bank, and others are advisors and book-runners for the IPO.
