Elkem completes IPO and listing on Oslo Børs

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Elkem completes IPO and listing on Oslo Børs

Oslo 22 March 2018: Leading global silicones producer Elkem ASA has completed a successful Initial Public Offering and become one of the 30 largest companies on Oslo Stock Exchange after today’s listing.

On 26 February Elkem announced its intention to launch an Initial Public Offering (IPO) and apply for a listing of the company’s shares on Oslo Børs. The offering period for the IPO closed yesterday and trading of the shares commenced on Oslo Stock Exchange (OSE) today.

Shares in the offering were allocated at a final price of NOK 29 per share, and trading commenced this morning at an opening price of NOK 27,9 per share. The transaction is the second largest IPO in Norway over the last 10 years. Elkem entered OSE with a market capitalization of some NOK 16,9 billion positioning the company as one of the 30 largest companies on this market place.

China National Bluestar has been sole the owner of Elkem since 2011. In connection with yesterday’s IPO, Bluestar has reduced its ownership from 100 per cent to 56% post greenshoe (61.8 per cent pre greenshoe) and will continue to be Elkem’s majority shareholder.

“We are honored that many international, professional and recognized investors have invested in Elkem. I look forward to establishing a good dialogue with our new shareholders and to continue our well-functioning co-operation with Bluestar”, said Mr. Helge Aasen, CEO of Elkem.

Elkem is a global leader in silicon-based advanced materials, with a history of more than 110 years of technology-driven growth.

Under Bluestar’s ownership, Elkem has been transformed into a more specialised and global company, and has transitioned into a predominantly specialty chemicals company with the majority of its revenues from the silicones value chain. A partial exit through an IPO has been part of Bluestar’s strategy for their Elkem investment from the beginning.

“When we started planning for a listing, there was never any big discussion where we should be listed. Elkem is a global player, but our Norwegian legacy is strong. We have eight production sites in Norway and we are headquartered in Oslo. But most important of all; Oslo Børs is an efficient market place that attracts highly reputable international investors.”, Mr. Aasen continued.

Acquiring Chinese growth opportunities

Elkem has a growth strategy, targeting further expansion and development of its fully integrated silicone-based value chain. An important part of this strategy is ready to be realized in connection with the IPO. Proceeds 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. (Xinghuo Silicones) and Bluestar Silicon Material Co. Ltd. (Yongdeng Silicon Materials). These acquisitions position Elkem as a true global player with a more diversified revenue base and significant growth platform in the fast-growing Chinese market.

“Xinghuo Silicones and Yongdeng Silicon Materials will complement Elkem's existing silicones business, enabling further specialisation into high value-added segments. Further, by acquiring Xinghuo Silicones and Yongdeng Silicon Materials, Elkem will gain significant upstream capacity in the fast-growing Chinese markets and thus improved supply of its full product range to specialty customers in China,” said Mr. Aasen.

Elkem and the new Chinese business have approximately 6100 employees worldwide and had a combined, total operating income of NOK 21.4 billion, while operating EBITDA amounted to 3.2 BNOK for the year ended 31 December 2017.

Contact information

Kristin Karlstad, VP Public Affairs, tel: 99 22 66 04, e-mail: kristin.karlstad@elkem.no

About Elkem

Elkem is one of the world’s leading providers of silicones and silicon solutions and uniquely positioned in the market through full ownership of the value chain from quartz to specialty silicones. Elkem also has strong positions in specialty foundry alloys and carbon materials. Headquartered in Oslo, Elkem has annual revenues of 21 billion NOK ($2.6 billion), employs 6,000 people and operates 27 production sites around the globe. The company has an extensive sales and R&D network to deliver innovative technologies and market-based solutions that contribute to a sustainable future. www.elkem.com

About Bluestar

Bluestar is a leading company in the new chemical materials, basic chemical engineering, animal nutrition and environmental science sectors. It is a subsidiary of China National Chemical Corporation, a state-owned company that is one of China's leading chemical companies.

IMPORTANT INFORMATION

These materials are not for distribution, directly or indirectly, in or into the United States, Australia, Canada or Japan. These materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in any jurisdiction where such offer or sale would be unlawful and the announcement and the information contained herein are not for distribution or release, directly or indirectly, in or into such jurisdictions.

The shares mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act"), and may not be offered or sold in the United States absent registration or exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any shares referred to herein in the United States. Any shares sold in the United States will be sold only to qualified institutional buyers (as defined in Rule 144A under the Securities Act) pursuant to Rule 144A or another exemption from registration under the Securities Act.

This communication is directed only at (i) persons who are outside the United Kingdom or (ii) persons who have professional experience in matters relating to investments falling within Article 19(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended from time to time (the Order) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order or (iv) certified high net worth individuals and certified and self-certified sophisticated investors as described in Articles 48, 50, and 50A respectively of the Order or (v) persons to whom this communication may otherwise be lawfully communicated (all such persons together being referred to as "relevant persons"). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

This communication is distributed in any member state of the European Economic Area which applies Directive 2003/71/EC (this Directive together with any implementing measures in any member state, the "Prospectus Directive") only to those persons who are qualified investors for the purposes of the Prospectus Directive in such member state, and such other persons as this document may be addressed on legal grounds, and no person that is not a relevant person or qualified investor may act or rely on this document or any of its contents.

This announcement does not constitute a prospectus and nothing herein contains an offering of securities. No one should purchase or subscribe for any securities in the Company, except on the basis of information in any prospectus published by the Company in connection with the potential offering and admission of such securities to trading and official listing on Oslo Børs. Copies of any such offering memorandum will, following publication, be available from the Company's registered office.

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