Kenana Sugar Seeks $200 Million in Sudan’s 1st S. Africa IPO

Kenana Sugar Co., Sudan’s biggest producer of the sweetener, plans to raise about $200 million in an initial public offering in Johannesburg next year, the first by a company from the East African nation on the bourse.

Renaissance Capital, a Moscow-based investment bank, and Dubai-based Shuaa Capital PSC 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.

Other producers that trade in Johannesburg include Illovo Sugar Ltd., Africa’s biggest sugar producer by market value, which has operations in Malawi, Zambia, Tanzania, Swaziland and Mozambique. Tongaat Hulett Ltd. and Crookes Brothers Ltd. also trade on the country’s stock exchange. Sudan is Africa’s biggest producer after South Africa and Egypt, with an average crop of about 700,000 metric tons a year in the three years to 2011, according to the International Sugar Organization.

Kenana plans to double annual sugar output to 1 million tons by 2015 and triple biofuel production 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 the Sudanese, Kuwaiti and Saudi Arabian governments, which are its main shareholders, to fund expansion, Suna said.

Sugar Imports

Sudan imports more than 670,000 tons of sugar annually to meet local demand, according to the central bank. The country plans to become self-sufficient in output by 2014, Industry Minister Abdul-Wahab Osman was cited as saying by Suna on April 3. Annual production is about 850,000 tons and the entry of “new partners” in the market will boost output to 2 million, Osman said. without specifying when this would happen.

Kenana, established in 1982, is 34 percent owned by Sudan’s government, while the Kuwait Investment Authority has a 30 percent stake and Saudi Arabia owns a 12 percent holding.

No one was available at Renaissance Capital’s head office in Moscow when Bloomberg called today seeking comment. The Johannesburg Stock Exchange won’t comment on new listings, according to an e-mailed response to questions.

Other companies that trade in Johannesburg and are headquartered in other African countries include Oando Plc, a Nigerian oil-product distributor, and Trustco Group Holdings Ltd., a Namibian financial-services company.

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