Sources inform ''Globes'' that agrichemicals maker Adama Agricultural Solutions Ltd. (formerly Makhteshim Agan), owned by China National Chemical Corporation (ChemChina) (60%) and IDB Holding Corp. Ltd. (TASE:IDBH) (40%), is in the preliminary stages of an offering, which is due to be held by the end of the year. The lead underwriter will be Goldman Sachs, and more underwriters are being examined, apparently including JPMorgan and Credit Suisse.
As for the stock market where the offering will be held, new Adama CEO Chen Lichtenstein recently told "Globes", "We want to be traded in a place with enough investors who understand the industry, analysts who cover the sector, and market makers, who will trade in the share. New York is the best place."
Sources say that as soon as Adama decides on the underwriters and the market for the offering, the process will go ahead within three months.
Adama broke the $3 billion revenue threshold in 2013, after 8.5% growth over 2012. Net profit rose 3.7% to $127 million and earnings before interest, taxes, depreciation and amortization (EBITDA) rose 8.4% to $466 million.
Market sources assume that Adama will hold its offering at an EBITDA multiple of 8-10, which will give a company value of $3-3.5 billion, after deducting its net debt of $1.2 billion.