Australia“s only soda ash manufacturer, Penrice Soda Holdings, joined the Australian Stock Exchange on 4 July 2005 with plans to increase production and expand overseas sales.
Penrice was the first …
Australia“s only soda ash manufacturer, Penrice Soda Holdings, joined the Australian Stock Exchange on 4 July 2005 with plans to increase production and expand overseas sales. Penrice was the first company to list on the ASX in the new financial year 2005-06. Turnover on the first day of trading was 2.75 million shares worth AUD 5.45 million. Penrice issued 41.75 million shares at AUD 1.93 each in its initial public offer, which closed fully subscribed. The company raised AUD 80.5 million, which it used to buy out its owners, private equity funds Quadrant Capital Fund No 3 and Colonial First State Private Equity. The company did not make a general retail offer as it expected high demand for its shares. Penrice chairman John Heard welcome the “very positive response” to the float and listing, adding that the firm now had nearly 2900 shareholders. Investors gave their support to the IPO because of the high barriers to entry into the soda ash market. Penrice was set up in the late 1930s by UK-based ICI Alkali to provide an Australian source for the product, with a plant near Adelaide. Penrice sells about 74% of Australia“s soda ash.