WE Soda confirms plans to debut in London

WE Soda is to make it stock market debut in London, after seeing "considerable" investor interest, the industrial giant confirmed on Wednesday.

The world’s largest producer of natural soda ash - which is used in a number of industrial processes, including glass manufacturing - first announced at the end of May it was considering an initial public offering in London.

Since then, chief executive Alasdair Warren said there had been "considerable interest" from potential investors, which had given the firm "confidence" to proceed with the IPO in London.

He continued: "We are the world’s largest producer of soda ash, one of the lowest cost producers, and the fastest growing.

"We are able to deliver high operating margins and generate strong free cashflow, which allows us to invest for future growth while also maintaining a prudent balance sheet and being able to distribute attractive dividends to our shareholders.

"We believe that all these factors together make for a compelling investment proposition."

The UK-based firm - which has two large production sites in Turkey - is reported to be targeting a valuation of around $7.5bn, which would see it enter the FTSE 100. In 2022, WE Soda posted revenues of $1.8bn and adjusted core earnings of $838m.

WE Soda said it expects the IPO to raise net proceeds of around $800m, which will be used to pay down debt and for general corporate purposes.

Both the final offer price and the maximum number of shares to be sold will be set following a book-building process, however.

The IPO is a boon for the City, which has been struggling to attract new listings in recent years.

WE Soda is owned by Ciner Group, the industrial conglomerate built up by Turkish billionaire Turgay Ciner.