EuroChem is considering an IPO

Russian mineral fertilizer producer EuroChem is considering an IPO to raise funds for business development. Its representatives have already held negotiations with consultants on the IPO, although the final decision has not yet been made.

During the first half of 2021, EuroChem increased its revenue by 45% to almost $4.4 billion and free cash flow by 131% to $783 million. Sales of mineral fertilizers jumped by 79% to 3.4 million tons.

“An IPO may become a successful instrument of attracting investments for EuroChem, taking into account the favorable situation in the global fertilizer market – the shutdown of many chemical enterprises in Europe and China has inflated fertilizer prices. At the same time, the net debt of EuroChem in the first half of the year exceeded $3.3 billion, and the company is simultaneously implementing a project for the construction of an expensive ammonia and carbamide plant EuroChem Northwest-2. Therefore, additional financials would come in handy,” commented the information and analytical service of Fertilizer Daily.

Source: Bloomberg