WE Soda IPO: Soda ash producer to make its debut in London stock exchange

The soda ash producer is backed by Turkish industrial conglomerate Ciner Group. The parent firm said that indirect net proceeds from the offering are expected to be about $800 million. 

Based on the earning of the company and its traded peers, WE Soda is expected to seek a vluation of about $7.5 billion, reported Bloomberg. Other than being the largest natural ash producer, the firm is also known to be one of the lowest cost producers of soda ash globally. In 2022, the firm produced around 5 million metric tons of natural soda ash and sodium bicarbonate.

BNP Paribas SA, Goldman Sachs Group Inc. and JPMorgan are joint global coordinators on the offering, while Deutsche Bank AG, Liberum, Morgan Stanley, MUFG and Numis Corp. are joint bookrunners, reported Bloomberg.

WE Soda started its soda ash production in 2009. The company operats two facilities based in Turkey. The company sells its products to clients based in eighty different countries across the world. In 2021, the company sold 60% of US business. The company’s two operating facilities are located in Eti and Kazan, Turkey. It also runs a dedicated port facility at Derince, Turkey to facilitate its exports across the world.

WE Soda listing can boost UK’s stock market in 2023

The listing will also be a favourable event for the Londong’s flagging IPO market, where just $600 million has been raised so far this year, reported Bloomberg. The London Stock exchange was the victim of hawkish stance of Bank of England, heightened inflation, volatile markets. All these factors have been a mood-dampener for the investors, with some now selectively putting money in stable, cash-generative assets.

It is worth noting, that UK’s stock market underperformed heavily throughout the year in FY2023. According to a report by Motilal Oswal, UK’s stock market’s mcap slid by 8% to $3 trillion in 2023. 

Updated: 07 Jun 2023, 12:55 PM IST