Bluestar reduces shares in Elkem as IPO completed

Oslo - Norway-based silicones producer Elkem ASA has completed a successful initial public offering (IPO) on the Oslo Stock Exchange to finance its growth strategy, it was announced 22 March.

The company, which was acquired by the ChemChina-owned China National Bluestar Group in 2011, said the transaction was “among the largest IPO’s in Norway over the last few years”.

In connection with the IPO, Bluestar reduced its ownership of Elkem from 100% to 61.8% and will continue to be Elkem’s majority shareholder.

“Going public is an important and natural step to development and upgrading. Bluestar will continue to support Elkem after IPO to achieve continuous growth of its business,” said Ren Jianxin, chairman of ChemChina.

Elkem, which mainly specialises in silicon-based advanced materials, said the share capital raised in the offering will partly be used to finance the acquisition of the two Chinese sister companies Jiangxi Bluestar Xinghuo Organic Silicone Co. Ltd. and Bluestar Silicon Material Co. Ltd.

“Xinghuo Silicones and Yongdeng Silicon Materials will complement Elkem's existing silicones business, enabling further specialisation into high value-added segments,” said Helge Aasen, CEO of Elkem.

Furthermore, the acquisitions will give Elkem “significant upstream capacity in the fast-growing Chinese markets”, Aasen added.