Industrial giant to boost London with major float
AN industrial materials maker controlled by a billionaire Turkish family is set to launch the City’s first major IPO this year, raising hopes that London’s public listings drought could be coming to an end.
WE Soda, the world’s largest producer of natural soda ash which is used in glass manufacturing, expects to price its share offering by the end of June and join the FTSE 100 shortly thereafter.
The company is controlled by the Turkish Ciner family, who have a home in London and own a number of industrial businesses as well as media outlets in Turkey.
The firm could fetch a market cap of up to $8 billion (£6.5 billion), according to analysts Mergermarket. That would make it the biggest UK IPO since pharma giant GSK’s £28 billion spin-off of its consumer health business Haleon in July last year. It comes amid a turbulent time for the London market, in which a suite of businesses including chip designer firm Arm and building materials maker CRH snubbed the FTSE in favour of pursuing a listing in New York in search of higher valuations.
WE Soda chief strategy and risk officer Nicholas Hall told the Standard: “Despite the challenging market backdrop, we’re confident of a successful listing.
“The FTSE 100 is associated with quality and prestige and given that history it seems the right place to list. Investors are seeking quality companies with defensive characteristics.” The company is also exploring an offering to retail investors of up to £7 million in shares, the maximum permitted under European rules, in a move which Hall said was because “an important investment opportunity should be open to everyone.” WE Soda had revenue of $1.8 billion (£1.4 billion) in 2022 with EBITDA of $848 million.
The company generates five million tons of natural soda ash annually across two facilities in Turkey.
Proceeds from the IPO will be used to fund its $5 billion investment into building two new sites in Wyoming, USA, in a bid to more than double production. Glass manufacturing accounted for around 60% of global soda ash demand in 2022.
The company is chaired by Didem Ciner, a graduate of the London School of Economics and the wife of Turgay Ciner, the billionaire behind the Ciner group conglomerate, which owns a number of industrial and energy businesses as well as Turkey’s highest-circulation newspaper, Haberturk, and operates the Turkish TV station of media firm Bloomberg.
Another of the company’s subsidiaries, Ciner Glass, was granted permission to build a £390 million glass container factory in South Wales in June last year in a move which would create 600 new jobs.