WE Soda, known as the world’s largest natural soda ash producer and owned by the Turkish Ciner Group, has started preparations for an IPO in the UK. This UK-based company, where soda ash is produced for glass production and various other uses, plans to apply for listing in the premium segment of the London Stock Exchange (LSE). However, WE Soda, which plans to go public, made an adjusted profit of $838 million on revenue of $1.8 billion last year.
According to the press reports, detailed information about the price and size of the IPO was not provided. However, in the statement made by Alasdari Warren, the CEO of the company, he said that Ciner Group will continue to hold 2/3 of its shares in the company and that at least 10 percent of the company’s issued capital can be offered to the public. The potential valuation of the company is stated to be up to 8.5 billion dollars.
Among the primary objectives of WE Soda after the public offering is to focus on investments aimed at maintaining its current leadership position in soda ash production. The group, which is currently working on two soda ash production facilities, aims to invest 5 billion dollars in order to more than double its annual soda ash production, which is 5 million tons, by 2030.
Mentioning the reason why they went public in London although the majority of their production facilities are located in Turkey, Warren said, “The reason we chose London is because we are a European-based business and our founder resides here. “London is a relatively modest pond and we can have a big fish here,” he said.
It is stated that WE Soda is working with international financial institutions such as JPMorgan, BNP Paribas, Goldman Sachs, Morgan Stanley, Deutsche Bank, Liberum, MUFG and Numis for the IPO process.
Leader in Natural Soda Production
WE Soda is a global leader in natural soda ash production, according to information on the company’s website as of October 2022. However, according to the information conveyed, the production cost of the company is well below its competitors.
According to the reports published by the group for the end of 2021, the total natural soda ash and sodium bicarbonate production of WE Soda was 4.9 million tons.
However, according to the information in a presentation released by the company in October 2022, the company has owned Eti Soda’s total annual production capacity of 1.7 million tons, Kazan Soda’s 2.7 million tons, Pacific Soda, which they laid the foundations of in a joint venture with Şişecam. The production capacity of West Soda, which is 5.4 million tons and planned to start production before 2030, is planned as 3 million tons.
Within the framework of all these, the company, which plans to go public, aims to increase its production capacity from 5 million tons in 2022 to 11.1 million tons in 2030 with the contributions of Pacific Soda and West Soda, which are under investment.
Şişecam’s Biggest Competitor
Şişecam’s biggest rival in the sector is WE Soda, owned by Ciner Group, which is traded on Borsa Istanbul and has become the world’s second largest producer of natural soda ash with its recent investments.
Holding 60 percent of Pacific Soda’s shares, which it has made as a joint venture with Ciner Group and its recent investments, Şişecam produced a total of 4.877 million tons of soda ash in the last quarter of 2022, taking its place right behind its rival WE Soda. In the same period, WE Soda held the leadership with its 5 million tons of soda ash production.
Soda ash, which takes place as an input in the production of many products from glass manufacturing to solar panels and lithium batteries, has a particularly important position for Şişecam. Soda ash, which is among the main inputs of products such as flat glass produced by the company, stands out as a cost item for the company.
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