IDE revives IPO plans following Hadera commissioning

Investors could soon get their hands on a chunk of Israeli desalination specialist IDE Technologies, if joint owners Delek Group and Israel Chemicals succeed in a renewed push to float off 25% of the company.

A previous attempt at a London IPO failed in 2007, but IDE has come a long way since then, more than doubling its revenues to $270 million in 2008, and posting a healthy profit of $72 million during the first nine months of 2009. Early indications are that the shareholders are targetting a valuation in the $800 million - $1 billion range.

While the scarcity value of a pure-play desalination company always creates something of a buzz, IDE should be of interest to a wider audience. The recent commissioning of the Hadera plant significantly reduces the construction risk in its portfolio, and will help ensure a steady revenue stream over the next 25 years.