WE Soda has scrapped plans to float on the London Stock Exchange (LSE), citing cautious investors as a reason for pulling back.
The producer of natural soda ash originally announced its intention to list on June 7 and proceed with an initial public offering. The initial offer looked to raise $800 mn, which would have been used to reduce the company’s net debt.
Given the ever-changing market and macro environment conditions, however, WE Soda CEO Alasdair Warren says the company is ‘unable to arrive at a valuation’ at this time.
‘The reality is that investors, particularly in the UK, remain extremely cautious about the IPO market and this extreme investor caution in London meant we were unable to arrive at a valuation that we believe reflects our unique financial and operating characteristics,’ he explains. ‘As a result, we have decided to cancel our IPO on the LSE.’
The Financial Conduct Authority announced plans to reform and streamline the listing rules to boost the attractiveness of the UK market for companies, which would have included WE Soda.
The reform, first announced in 2021, will replace the existing standard and premium listing segments with a single category for equity shares in commercial companies. If applied, the listing reform will also scrap shareholder votes on transactions such as acquisitions to reduce ‘frictions’ to companies.
Warren adds: ‘Notwithstanding this decision, our strategic priorities remain the same – our relentless focus on sustainability and safety, delivering on our growth projects in Turkey and the US.’
