London’s public markets remain red hot after a multi-billion-pound food business said it will list in the capital.
Olam Food Ingredients is looking to go public early next year in what will be one of the biggest floats in recent times.
The company will raise around £2billion from the float and immediately earn a place in the FTSE100.
Appetite: Olam Food Ingredients is looking to go public early next year in what will be one of the biggest floats in recent times
The decision by Olam is a big win for London as the City looks to attract more world-class companies post Brexit.
The London Stock Exchange had its strongest first half for listings in 2021 since 2014, but faces growing competition from the likes of Amsterdam.
The stock exchange is also under threat from private equity predators, snapping up companies whose valuations have been depressed during the pandemic. As a result, Chancellor Rishi Sunak is trying to encourage a ‘Big Bang 2.0’ in the City and so far this year technology giants Deliveroo and Darktrace have come to market.
The float will also give London a much needed boost in the food and beverage space as Cadbury’s, United Biscuits and Northern Foods have all been sold off over the past ten years.
Based in Singapore, Olam Food Ingredients works with some of the world’s best-known food and drinks brands. It has 15,000 employee, operates more than 100 manufacturing plants, and sells cocoa, coffee, dairy, nuts and spice ingredients.
Anantharaman Shekhar, chief executive, said: ‘The primary listing on the stock exchange will give us access to London’s large and diverse investor base, with its deep and liquid capital markets, and enable us to benefit from its strong understanding of and research coverage across the food and beverage sector.’
In 2020 Olam posted revenues of £6.6billion and profits of £435m. It is majority owned by Temasek Holdings, Singapore’s state-backed investment company, which holds a 53.2 per cent stake, with 15 per cent also held by Japan’s Mitsubishi Corporation. It has appointed Citigroup, Credit Suisse, HSBC, JPMorgan and Morgan Stanley to work on the IPO.
Olam Food Ingredients was created in early 2020 after it de-merged from commodities giant Olam International.
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