Finnish Chemicals IPO to take place in Q3 "at earliest"

12 April 2001 13:05  [Source: ICIS news]

LONDON (CNI)--Finnish Chemicals said Thursday its initial public offering (IPO) would take place in the third quarter this year at the earliest, depending on the strength of the stock market.

Chief executive Steve Smith told CNI: 'The third quarter of 2001 is the earliest practical timing, but our decision will be based of the strength of the underlying stock market."

However, he added that Finnish Chemicals may not float at all if the market conditions are not right.

Smith described the proposed listing as an exit mechanism for existing shareholders, rather than a method of injecting new capital into the company. "We have no immediate capital needs," he added.

Although Finnish Chemicals has indicated that it plans to float on the Helsinki exchange, it is understood that other stock markets are being considered.

Finnish Chemicals hopes to benefit from increasing demand for sodium chlorate, particularly in the US where new environmental legislation, which is being introduced on 15 April 2001, will force pulp and paper manufacturers to use cleaner bleaching methods. Sodium chlorate is an alternative to traditional bleaching agents.

Smith said: "We will make investments in our sodium chlorate cell room facilities in Europe and the US to lower costs and give us more flexible production."

Finnish Chemicals generated sales of about Euro250m ($225m) in 2000. It has three sites in Finland and five in North America and about 550 employees. Its main businesses are fine chemicals, chemicals for the pulp and paper industry, and chlor-alkali products.

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Author: Will Beacham
+44 208 652 3214

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