We Soda’s Expected IPO Is A Boost For London

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  • Industrials company, ‘We Soda’ has announced its intention to float on the LSE.
  • The company manufactures natural soda ash, used in industrial processes and sustainable solutions.
  • The listing is expected to value the company at around £6.5 billion, making it the largest IPO this year.
  • Retail investors are expected to have the opportunity to buy shares in the company.

We Soda IPO To Boost London Market

We Soda’s intention to list on the London Stock Exchange is a boost for the City just as the capital has been left reeling from some high-profile names which have opted for the bright lights of New York instead. By describing the FTSE 100 as being associated with quality and prestige, the company has provided a ray of light for London, with the LSE’s defensive characteristics considered a benefit at a time of uncertainty due to soaring inflation and high interest rates.

The stock market launch of the industrial materials maker will be the FTSE’s first major IPO this year, but although this is a much-needed drop in a parched landscape, it’s still unlikely to lead to a flood of immediate listings due to the still volatile nature of market sentiment.  Nevertheless, it brings a wash of confidence to London, and raises hopes that the City can capitalize on the UK’s entrepreneurial activity in the sustainable solutions sector.

Natural soda ash, which the company manufactures is used in a vast range of industrial processes, but crucially applications needed in the energy transition, such as solar photovoltaic glass and the production of lithium carbonate used in EV batteries.

It’s estimated the firm could float at a price valuing the company at around £6.5 billion, which would make it the largest launch since GSK listed Haleon (LON:HLN) as a separate company last July.

The intention to include retail investors in the offer, and not just institutional investors must be welcomed as far too many listings in recent years have excluded regular investors from taking part. However, retail investors should be aware that a period of volatility can follow such launches, so they should ensure they are well-diversified before taking up any offer.

Article by Susannah Streeter, head of money and markets, Hargreaves Lansdown