WE Soda, the world’s largest producer of natural soda ash, is planning to list on the London Stock Exchange in a rare flotation in the City.
The UK-based company, which produces a key component in glass production, has confirmed it is considering an initial public offering (IPO).
Natural soda is used in a vast array of industrial processes but is crucially in applications needed to drive the energy transition, including solar photovoltaic glass and lithium carbonate used in electric vehicle batteries.
Both institutional investors and retail investors are being invited to take part in the sale, with the listing expected to value the company at £6.5bn, the largest IPO this year and the biggest since Haleon’s £28bn spin-off from GSK nearly a year ago.
The offer would be wholly comprised of shares to be sold by the existing owner, Turkey's billionaire Ciner family.
JP Morgan, BNP Paribas, Goldman Sachs (NYSE:GS), Deutsche Bank, Liberum, Morgan Stanley (NYSE:MS), MUFG Securities and Numis Securities have been engaged to assist with the process.
The listing is a welcome boost to London, which has seen a dearth of new businesses list in London, while some of its biggest hitters, such as construction group CRH, have opted for a primary listing in New York.
“By describing the FTSE 100 as being associated with quality and prestige, the company has provided a ray of light for London, with the LSE’s defensive characteristics considered a benefit at a time of uncertainty due to soaring inflation and high-interest rates,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Though, she added, it is unlikely to spark a flurry of activity with volatility and uncertainty still dominating the market.
“This is a much-needed drop in a parched landscape, it’s unlikely to lead to a flood of immediate listings due to the still volatile nature of market sentiment,” Streeter said.
According to data compiled by the London Stock Exchange, there have been 11 IPOs in the year to 30 April.