Silicon supplier Elkem eyes EUR 520m gross from Oslo IPO

Elkem Thamshavn smelter, 2010. Author: Trondheim Havn.

February 27 (Renewables Now) - Elkem ASA, the Oslo-headquartered producer of solar grade silicon, silicon, speciality ferrosilicon alloys and carbon materials, plans to launch an initial public offering (IPO) to support its strategy and growth plans.

The company said Monday it would issue new shares to raise some NOK 5 billion (USD 639m/EUR 519m) gross. It is to list on Oslo Børs.

The IPO will include a public offering to institutional and retail investors in Norway, and a private placement to institutional investors globally. The company's owner, Bluestar Elkem International Co Ltd SA, which is part of China National Bluestar (Group) Co Ltd, intends to also sell shares in Elkem, but to keep a majority stake.

The pricing of the offering is expected in the current quarter. ABG Sundal Collier and Morgan Stanley & Co Intl serve as joint global coordinators and bookrunners, while Carnegie AS, Citigroup Global Markets and Nordea Bank AB are joint bookrunners.


Elkem’s growth strategy includes the further expansion and development of its fully integrated silicone-based value chain. In connection with the planned offering, Elkem said it will buy all of Chinese sector firms Jiangxi Bluestar Xinghuo Organic Silicone Co Ltd and Bluestar Silicon Material Co Ltd. This will allow it to “become a true global player with a more diversified revenue base and significant growth platform in the fast-growing Chinese market,” Elkem said.

Together with the Chinese units, the company has roughly 6,100 employees globally, a total operating income of NOK 21.4 billion in 2017 and operating earnings before interest, tax, depreciation and amortisation (EBITDA) of NOK 3.2 billion.

Elkem said it plans to use some of the proceeds from the IPO to finance the Chinese acquisition.


The table below contains details on Elkem’s performance in the past three years.

All in NOK million 2017 (incl Chinese buy) 2016 (incl Chinese buy) 2015
Total operating income 21,368 16,921 14,541
Operating EBITDA 3,154 1,536 2,207
Profit (loss) for the year 1,249 (268) 835

In the medium term, Elkem is targeting revenues to reach approximately double GDP growth. Its goal for 2018 is double-digit revenue growth.

(NOK 10 = USD 1.28/EUR 1.04)

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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