The IDC said on Thursday that its strategic partner in Foskor, India's Coromandel Fertilisers, could also lift its stake in the company to some 15%.

The valuation of Foskor had risen by over 400% in the year to March to R9,5-billion, and this could more than double on its listing, after the fertiliser industry's prospects improved, IDC CFO Gert Gouws said at a presentation in Johannesburg.

Foskor doubled its operational income to over R1-billion for the year, after having posted an operating income of R514-million in the 2007 financial year.

IDC CEO Geoffrey Qhena said in an interview that Foskor's floatation could be the biggest new listing the Johannesburg exchange had seen. The parent company would appoint advisors for a planned black- economic-empowerment (BEE) deal and initial public offering on July 10.

This was after the IDC managed to turn the company's fortunes around, with the help of Coromandel, he said, adding that it was a good example of the long-term role that his company played in its investments.

OWNERSHIP

Under the 2005 business assistance agreement that Coromandel had signed with the IDC to help turn Foskor around, it acquired an initial 2,5% in equity, with the option of increasing this if it helped turn around the company's fortunes.

IDC chief economist Lumkile Mondi said that Foskor would do a black economic-empowerment deal, which would see workers and communities near its operations holding 26% to 28% of the company, along with strategic equity partners.

The IDC would maintain a strategic holding in the fertiliser maker of some 26%.

Mondi said that the company was then looking at having a free float of 26% to 31%.

The rationale behind Foskor's listing was that it would unlock value, and the company also needed to do a BEE deal anyway, to comply with South Africa's mining laws, Qhena stated.

He said that the IDC wanted to make it a "true model" of empowerment.

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