Burrup Holdings IPO

A chemical company from Australia is planning to come out with its IPO or Initial Public Offering. Burrup Holdings Ltd, which operates an ammonia plant in Western Australia, has launched a $500 million initial public offer (IPO) to list on the Australian Securities Exchange.


What s the size of the Burrup Holdings IPO?
The Burrup Holdings IPO is expected to raise around 390 to 502 million $

What is the price range of the Burrup Holdings IPO?
The Burrup Holdings IPO shares are priced in the range of $1.75 to $2.25 per share.

What are the business valuations and market position of Burrup Holdings?
The company accounts for about four per cent of the total output of tradable ammonia and has forecast production of more than 800,000 tonnes in fiscal year 2009.
The plant is located on the Burrup Peninsula in WA and is the only merchant ammonia plant in Australia.
Burrup has a 20 year offtake and marketing agreement with Yarra International, which also has a 30 per cent stake in the ammonia producer.
Burrup and Yarra have also entered into an agreement to evaluate a feasibility study into the construction of a 350,000 tonnes per year ammonium nitrate plant in WA.
Ammonium nitrate is used to produce explosives and Burrup said the plant's production is expected to be produced by the growing mining industry in WA.

Where will the IPO proceeds be used for Burrup Holdings IPO?
As per the SMH, "The IPO will position Burrup to take advantage of its considerable growth opportunities and utilise its extensive skills in downstream industry to create further shareholder value," chairman and managing director Pankaj Oswal said in a statement.
Burrup said it was favourable positioned to capitalise on global conditions for the sale of ammonia, where prices have traded above $US500 ($A523.83) per tonne.
The company expects strong fundamentals, including declining arable land and potential demand for biofuel to support higher ammonia prices into the future.
"Burrup's industry leading expertise give it the platform necessary to take advantage of favourable market dynamics and generate long term attractive returns for investors," Mr Oswal, said.

What will be the share holding pattern after the Burrup Holdings IPO?

Following the IPO, Mr Oswal will own 58 per cent of the listed company, Yarra will hold 27 per cent, with new shareholders holding the balance. No information is presently available about the listing dates of the Burrup Holdings IPO.

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