Elkem completes IPO and listing on Oslo Børs

On 26 February Elkem announced its intention to launch an Initial Public Offering (IPO) and apply for a listing of the company’s shares on Oslo Børs. The offering period for the IPO closed yesterday and trading of the shares commenced on Oslo Stock Exchange (OSE) today.

Shares in the offering were allocated at a final price of NOK 27,95 per share. The transaction is among the largest IPO’s in Norway over the last few years. Elkem entered OSE with a market capitalization of some NOK 16.9 billion.

China National Bluestar (group) Co, Ltd. has been the sole owner of Elkem since 2011. In connection with yesterday’s IPO, Bluestar has reduced its ownership from 100 per cent to 61.8 per cent and will continue to be Elkem’s majority shareholder.
Under Bluestar’s ownership, Elkem has been transformed into today’s structure. A partial exit through an IPO has been part of Bluestar’s strategy for their Elkem investment from the beginning.

“With Bluestar support, Elkem successfully transformed into an international company of high value specialized in silicone business. Going public is an important and natural step to development and upgrading. Bluestar will continue to support Elkem after IPO to achieve continuous growth of its business, consolidation of market share in all segments and offer a range of integrated services to customers,” said Ren Jianxin, Chairman of China National Chemical Corporation, parent company of Bluestar.

“The Elkem’s listing today is the achievement of many years of specialization and full integration to create a global worldwide leader in silicones. We have combined French technology and market positions, Norwegian precision & operational excellence and Chinese ambition and speed of execution. This creates a unique offer for our new shareholders, employees and our customers,” said Michael Koenig, CEO of China National Bluestar and Chairman of the Board of Elkem ASA.

“We are honored that so many international, professional and recognized investors have invested in Elkem. I look forward to establishing a good dialogue with our new shareholders and to continue our well-functioning co-operation with Bluestar”, said Helge Aasen, CEO of Elkem.

Elkem is a global leader in silicon-based advanced materials, with a history of more than 110 years of technology-driven growth. Elkem entered the Chinese market in 1997 and today has a strong industrial footprint offering a full range of high-quality silicones and silicon solutions as well as specialty foundry alloys and carbon materials to local customers.

Since 2011, Elkem has gradually become more specialized and more global, and has transitioned into a predominantly specialty chemicals company with the majority of its revenues from the silicones value chain.

Acquiring Chinese growth opportunities

Elkem has a growth strategy, targeting further expansion and development of its fully integrated silicone-based value chain. An important part of this strategy is ready to be realized in connection with the IPO. New share capital raised in the offering will partly be used to finance the acquisition of the two Chinese sister companies Jiangxi Bluestar Xinghuo Organic Silicone Co. Ltd. ("Xinghuo Silicones") and Bluestar Silicon Material Co. Ltd. ("Yongdeng Silicon Materials"). The acquisition positions Elkem as a true global player with a more diversified revenue base and significant growth platform in the fast-growing Chinese market.

“Xinghuo Silicones and Yongdeng Silicon Materials will complement Elkem's existing silicones business, enabling further specialization into high value-added segments. Further, by acquiring Xinghuo Silicones and Yongdeng Silicon Materials, Elkem will gain significant upstream capacity in the fast-growing Chinese markets and thus improved supply of its full product range to specialty customers in China,” said Helge Aasen.

Elkem and the new Chinese business have approximately 6100 employees worldwide and had a combined, total operating income of NOK 21.4 billion, while operating EBITDA amounted to 3.2 BNOK for the year ended 31 December 2017.