Bluestar Adisseo seeks $1.56 billion in IPO
Bluestar Adisseo is planning to raise as much as $1.56 billion from an initial public offering (IPO), and is banking on its strong industry position to get a good responses from investors.
The animal nutrition feed additive sector that Bluestar Adisseo is involved in has high growth potential globally, said Ren Jianxin, president of China National Chemical Corp (ChemChina).
Currently, Bluestar Adisseo is the world's second largest producer of methionine. Its Vitamin A output ranks third in the world and Vitamin E fourth.
Methionine is an important ingredient in animal feed. The world's top four producers account for about 90% of the product worldwide.
Expand in Europe
The company will use 40% of the IPO proceeds to expand and improve its European plants, and another 40% to develop its feed business, according to a company statement.
The move will help Bluestar improve its technology and management, making ChemChina more multinational, said Ren.
Bluestar is building a large plant in Nanjing to produce liquid methionine. The plant is expected to be producing in the second half of 2012, with a capacity of 140,000 tonnes.
China is one of the largest consumers of methionine in the world, but currently has no methionine producer. Estimated annual demand stands at 120,000 tonnes.
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