Fosagro phosphate fertilizer company plans to list in London

According to the Russian "Kommersant" reported on June 8, financial market sources revealed that Russia's largest phosphate fertilizer manufacturer Fosagro domestic company may announce the listing plan next week. It is reported that the company plans to sell 7% to 10% of shares on the London Stock Exchange. The funds will be used for new acquisitions, including Sibur Chemicals. The Sable Group plans to sell these assets before the end of the year.

Sources said that Fosagro has not yet made a final listing decision. The valuation of the company has not yet been completed. Sources said that the current assessment is 70 to 8 billion U.S. dollars. The Russian Federation’s Financial Markets Authority has approved the company’s sale of 21.4% shares abroad.

The Fosagro Group has a number of companies such as apatite, ** fertilizer, Cherepovets Nitrogen Fertilizer Plant and Balakoff Fertilizer Plant. The group produces more than 8 million tons of apatite annually and more than 470 million tons of fertilizer. Among them, phosphate fertilizer accounts for 90% of its products.

Sources said that according to the International Financial Reporting Standards (IFRS), Fosagro Group’s net profit in 2010 was US$395 million, 1.4 times the same period in 2009. He said that in the first quarter of 2011, the company’s income was 24.486 billion rubles, and the profit was 6.2 billion rubles. The debt as of the end of March was 4.7 billion rubles.

However, most of the plans for listing Russian companies in London this year have failed, and Russian chemical companies have never been listed. For example, Akron and Ural Chemicals. After issuing the prospectus, the two companies abandoned the listing due to the poor market conditions.