Burrup Fertilisers has confirmed it has begun gauging investor confidence in a potential $600 million float of the company on the Australian stock market, despite current volatile share market conditions.
Burrup Fertilisers Pty Ltd has confirmed it has begun gauging investor confidence in a potential $600 million public share offer and listing on the Australian stock market, despite current volatile share market conditions.
Backed by India's Oswal Group, Burrup has appointed global investment bank UBS as sole lead manager on the planned float, which company director Wolfgang Jovanovic said could potentially be some months away.
Mr Jovanovic said Burrup was currently sounding out investor appetite in the planned share offer, which would raise between $500 million and $600 million, and was quite confident support would be found.
"There's no doubt that there is volatility in the market at the moment, but there is a lot of confidence in our particular sector. Given the size of our company and the current market [demand] for our product, we have a lot of confidence that our planned float will be well received," he told WA Business News.
Mr Jovanovic said a decision will be made on whether to pursue the float in coming weeks.
If all bodes well for Burrup, it could achieve the second largest float in Australia since mortgage lender RAMS Home Loans listed in July last year after a $695 million initial public offering. RAMS has since been sold to Westpac Bank after being caught up in the US subprime meltdown of 2007.
The Burrup deal would continue a good run for UBS, which does not have an office in Perth but has advised on some of the biggest sharemarket floats and takeovers in Western Australia.
It managed NRW Holdings' $300 million initial public offering and Avoca Resources' $125 million capital raising during 2007, advised Ukrainian group Palmary Enterprises on its successful $1.3 billion acquisition of Consolidated Minerals, provided takeover defence advice to Leighton Holdings, and has been engaged this week by Mt Gibson Iron to provide takeover defence advice.
Burrup completed construction of its $700 million liquid ammonia plant on the Pilbara's Burrup Peninsula in early 2006, and made its first export shipment from the Port of Dampier in June of that year.
The plant was the first industrial development to be established on the peninsula following a $200 million infrastructure investment from the state government.
The plant is one of the world's largest ammonia production facilities, with a production capacity of 760,000 tonnes.
The Oswal Group has selected Papua New Guinea as the preferred site for its next project.
