Yara International ASA today announced that it is evaluating a potential initial public offering (IPO) of its Yara Clean Ammonia business (YCA) on the Oslo Stock Exchange.
Yara Clean Ammonia is uniquely positioned to enable the hydrogen economy in a market expected to grow substantially over the next decades.
Consistent with Yara’s ownership approach, the evaluation of a potential future listing is focused on attracting minority investors and reflects Yara’s strategic ambition to enable the hydrogen economy, where clean ammonia will play a crucial role within zero-emission shipping fuels, power generation, green fertilizer production and other industrial applications.
YCA was established as a separate segment and business unit in February 2021 to focus on clean ammonia, i.e. green and blue ammonia. Subsequently, Yara communicated that YCA would be set up as a separate legal entity and that Yara would maintain majority ownership. A potential IPO would raise capital to accelerate the growth of YCA, visualize the value of the business better and support increased management focus – for both YCA and Yara.
“The decision to evaluate a potential IPO of Yara Clean Ammonia represents a natural next step as Yara executes its strategy to broaden its business model. YCA remains core to Yara’s strategy and Yara will continue to provide long-term backing to YCA as its majority owner and preferred partner,” said Svein Tore Holsether, CEO and President of Yara. “As the world’s largest ammonia distributor – backed by own production assets and logistics infrastructure – Yara and YCA are uniquely positioned to capture value and take a leading position in the clean ammonia market.”
YCA is uniquely positioned to capture growth opportunities within clean ammonia production, transportation, and distribution.
Clean ammonia offers a solution to the decarbonization of hard-to-abate sectors, such as shipping, power generation and agriculture.