The world’s largest producer of natural soda ash has made the decision to cancel its planned £5.9bn London listing, delivering a significant setback to the city’s stock market. WE Soda, a UK-based company specializing in glassmaking ingredient production, cited “extreme” investor apprehension as the reason for scrapping the float. The firm, owned by Turkish media magnate Turgay Ciner, had originally aimed for an £8bn valuation, potentially securing a place in the FTSE 100.
This move dealing a serious blow to the London Stock Exchange (LSE) comes amidst a difficult period for the city’s stock market. In recent months, several companies have migrated to New York, resulting in the LSE struggling to maintain relevance. Furthermore, new deals have come to a halt, exacerbating the situation.
WE Soda expressed on Wednesday, “Since our announcement of intention to float a few weeks ago, we have witnessed considerable global investor engagement and subsequent interest in our IPO from potential investors.”
However, the company emphasized that investor caution, particularly in the UK, has proven to be a major hindrance. Due to this “extreme investor caution” in London, WE Soda concluded that a valuation reflecting their unique financial and operational characteristics could not be achieved.
Consequently, the decision was made to cancel the IPO on the London Stock Exchange.
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