Norwegian ammonia and fertilizer manufacturer Yara is evaluating a potential initial public offering of its Yara Clean Ammonia business (YCA) on the Oslo Stock Exchange.
A potential future listing is focused on attracting minority investors to raise capital to accelerate the growth of YCA, better understand the value of the business, and support increased management focus.
Established in February 2021, the green and blue ammonia-focused unit sourced, transported, and sold more than 4m tonnes of ammonia last year, and according to its parent Yara, who would maintain majority ownership, the business has built a robust project pipeline with significant investment decisions targeted over the next three years.
“The decision to evaluate a potential IPO of Yara Clean Ammonia represents a natural next step as Yara executes its strategy to broaden its business model. YCA remains core to Yara’s strategy, and Yara will continue to provide long-term backing to YCA as its majority owner and preferred partner,” said Svein Tore Holsether, CEO and president of Yara.
Yara said it will work with ABG Sundal Collier and J.P. Morgan on the potential stock-market listing and will initiate an internal process to organise YCA assets and contracts into dedicated entities/subsidiaries that, for now, will remain under its ownership.