NORWEGIAN silicon products producer Elkem is being listed on the Oslo Stock Exchange, via an initial public offering by parent company China National Bluestar (part of the ChemChina group).

Bookbuilding began last week, with the IPO expected to net around 7.7 billion Norwegian crowns (US$1 billion). Global coordinators are ABG Sundal Collier and Morgan Stanley, with Carnegie, Citi and Nordea as bookrunners.

Bluestar has said that it intends to remain as a long-term majority shareholder following the listing.

Founded in 1904, Elkem ASA is a supplier of silicon-based advanced materials, with operations throughout the value chain from quartz to specialty silicones. It has a strong market presence in segments such as specialty ferrosilicon, foundry alloys and carbon materials.

Headquartered in Oslo, Elkem has more than 6,000 employees and 27 production sites, and a global network of sales offices and agents. Elkem was acquired by Bluestar in 2011 for US$2 billion.

Beijing-headquartered Bluestar is a global chemical industry group with a focus on new chemical materials and animal nutrition. The Bluestar group has 58 factories, 16 research & development (R&D) facilities and a global presence.

Bluestar is owned 63.6% by state-owned China National Chemical Corporation. ChemChina is the largest enterprise in China's chemical industry. The company is active in six sectors: advanced chemical materials and specialty chemicals, basic chemicals, oil processing, agrochemicals, tyre & rubber products and chemical equipment.

In addition to Elkem, the biggest overseas subsidiaries of China National Bluestar include the polyethylene and polymers manufacturer Quenos and the animal nutrition supplier Bluestar Addisseo Company.

Last month Bluestar Adisseo Company completed the acquisition of Nutriad, a global feed additives producer. This transaction is part of Adisseo’s strategy to become one of the worldwide leaders of specialty additives in animal nutrition.

Nutriad, a multinational company headquartered in Dendermonde, Belgium, operates 4 laboratories and 5 plants located in Belgium, Spain, the UK, China and the USA.

Last year ChemChina acquired Swiss seeds and pesticides group Syngenta for US$43 billion.

Photo: Elkem