IPOs for Azelis, Nouryon
Two companies active in the speciality chemicals sector - chemicals distributor Azelis and Nouryon, the former chemicals division of AkzoNobel – have separately announced IPOs in recent weeks. Both are currently owned by private equity.
EQT-owned Azelis, which will list its share on the Euronext Brussels exchange at a time not yet disclosed, is seeking to raise €880 million via a primary offering of new shares from a capital increase and a secondary component from existing shareholders. The company said that it will use the proceeds, together with borrowing, to “significantly strengthen” its financial position by paying outstanding debts of around €1.6 billion, while funding further investment and acquisitions. It would also gain the access to capital markets it thinks necessary for a company of its size.
“The industry is expected to consolidate as principals and customers look to streamline their distributor relationships. Acquisitions will enable Azelis to expand its product portfolio and its geographic and product segment market coverage,” it said.
Meanwhile, Nouryon, which is currently owned by the Carlyle Group, has filed an application with the US Securities & Exchange Commission (SEC) to seek an IPO. This is expected to begin “after the SEC completes its review process”, the firm said. No details have been released about the projected number of shares to be offered or where the listing would take place.
In 2020, Nouryon had sales of $4.2 billion and EBITDA of $970 million. It said that it expects to use the proceeds for “general corporate purposes, which may include the repayment of indebtedness”.