Kenana Sugar Co., Sudan’s biggest producer of the sweetener, said it plans to raise about $200 million in an initial public offering in Johannesburg next year.
Renaissance Capital, the Moscow-based investment bank, and Dubai-based Shuaa Capital PSC (SHUAA) have been chosen to manage the planned share sale, the Khartoum-based company’s media office said in an e-mailed response to questions today. Kenana will provide more information on the offering in “the near future,” it said.
Kenana plans to double annual sugar output to 1 million metric tons by 2015 and triple biofuel output to about 200 million liters, the state-owned Suna news agency said on May 5. The company also expects a $500 million capital injection this year from its main shareholders, the Sudanese, Kuwaiti and Saudi Arabian governments, to fund expansion, Suna said.
Sudan is Africa’s third-biggest sugar producer, after South Africa and Egypt, producing an average of about 700,000 tons a year in the three years through 2011, according to International Sugar Organization statistics. The country imports more than 670,000 tons of the sweetener annually to meet domestic demand, according to the central bank.
Sudan plans to become self-sufficient in sugar production by 2014, Industry Minister Abdul-Wahab Osman was cited as saying by Suna on April 3. Annual output is currently about 850,000 tons and the entry of “new partners” in the market will boost production to 2 million in the coming years, Osman said.
No one was available at Renaissance Capital’s head office in Moscow when Bloomberg called today seeking comment.
To contact the reporter on this story: Michael Gunn in Khartoum at firstname.lastname@example.org