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Apollo-backed Taminco’s shares drop below reduced IPO price on debut

18 Apr 2013

chemical-blue_lrgShares in Apollo Global-backed green chemicals business Taminco fell by as much as eight per cent following its listing on the New York Stock Exchange today.

Taminco shares were trading as low as $14.05 following the IPO being priced at $15 per share, well down on the $18 to $20 range filed with the US Securities and Exchange Commission last week.

The Belgium-based business is hoping to sell just under 15.8 million shares, with underwriters given the option of picking up an extra 2.3 million at the IPO price.

Taminco’s low stock ebb values the business at under $900m, well short of the €1.2bn Apollo paid fellow buyout house CVC Capital Partners for a 95.5 per cent stake in December 2011.

Apollo’s stake could drop from 94.7 per cent to 68.2 per cent through dilution if the underwriters take up their full over-allocation, although it is not selling any shares. The firm’s shareholding is worth $702m at the IPO offer price.

Taminco is the world’s largest dedicated producer of alkylamines – organic compounds produced through the reaction of an alcohol with ammonia – which are used in everyday products in the agriculture, personal and home care, animal nutrition and oil and gas end markets.

In 2012 it sold 48 per cent of its volume in North America, 36 per cent in Europe, and the remainder in emerging markets across Latin America and Asia.

Taminco had previously tried to carry out a €421.5m listing in Brussels in January 2010, but scrapped the IPO due to market volatility and then attempted a number of private fundraisings through the course of 2012.

The chemical industry is one of Apollo’s largest focus areas and it has completed 13 major transactions in the space since its funding, all with positive returns and most with full or partial realisations.

Other businesses it has backed in this area include Lyondell Basell, Momentive Performance Materials, Berry Plastics and Borden Chemical.

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