IPO WATCH: Nord Gold, Koks, Glencore Tap Into Resource Demand
27 Gennaio 2011 - 4:27PM
Dow Jones News
Gold miner Nord Gold NV and coal producer and processor OAO Koks
(KOKS.RS) set price ranges this week on London IPOs that are
looking to tap demand for natural-resource investments, while
Glencore AG stoked the interest of investors and bankers as details
emerged on its massive offering planned for the second quarter.
Nord Gold, a Netherlands-incorporated spin-off of Russian mining
company Severstal JSC (CHMF.RS), Thursday said it aims to price its
shares at 300 pence to 390 pence, valuing it at as much as GBP3.2
billion and putting the offer size as high as GBP933 million if it
prices at the top end and a 15% overallotment is exercised.
The company, with gold mines in Russia, West Africa and
Kazakhstan, produced about 589,000 ounces of gold last year and
aims to produce more than 1 million ounces by 2013.
It stands to benefit from the elevated price of gold but will
also have to overcome investor concerns that the metal could be in
for a big tumble if the U.S. economy keeps improving and other
asset classes become more appealing. After hitting an all-time high
in December, gold has fallen back about 7.5% and hit a three-month
low Tuesday.
Credit Suisse (CS) and Morgan Stanley (MS) are leading the deal
as joint global coordinators.
Koks on Monday set its price range at $6.25 to $8 a share, or
between $12.50 to $16 a global depository receipt, valuing it at
between $2.1 billion and $2.6 billion.
The shares will trade in Moscow and the GDRs will trade in
London.
The Russian company's main products, coking coal, iron ore and
pig iron, have also been enjoying price rises amid the ongoing
investment frenzy around most natural resources. Coking coal, used
mainly for steelmaking, is in particularly hot demand after
Australia's January floods temporarily cut off a major source of
supply, driving up prices.
Koks plans to sell up to 20% of its existing shares in the IPO,
with the proceeds to go toward funding new business and general
purposes. The Zubitskiy family that founded Koks will remain its
majority owner.
Meanwhile, Switzerland-based commodities trader and producer
Glencore is moving closer to a London and Hong Kong IPO in the
second quarter that people familiar with the matter say could value
it at $50 billion to $60 billion. The company is one of the world's
largest traders of aluminum, nickel and other metals and sells
other products including oil, grains and sugar.
With an expected deal size of $7 billion to $10 billion, bankers
in London said they are hoping to get a spot on the deal, joining a
mandate led by Citigroup Inc. (C), Morgan Stanley and Credit Suisse
Group.
Investors in Hong Kong should also get a long-awaited IPO from
Italian fashion house Prada later this year, after its board
earlier Thursday approved a plan to list its shares there. The
company has considered pursuing a float for several years, most
recently in 2008.
Intesa Sanpaolo SpA (ISP.MI) unit Banca Imi, Unicredit SpA
(UCG.MI), Credit Agricole SA (ACA.FR) and Goldman Sachs Group Inc.
(GS) will run the deal.
In the Netherlands, Aperam SA (APAM.AE) joined the main market
with an initial market cap of EUR2.18 billion Wednesday, in a
listing that completes its spin-off from steel giant ArcelorMittal
(MT). Shares in the stainless steels company were placed with
ArcelorMittal shareholders, at a ratio of one Aperam share for each
20 ArcelorMittal shares held.
At 1445 GMT Thursday, the stock was trading at EUR30.86, up 10%
from its initial market price of EUR28 Wednesday. The company's
shares will also trade in Paris from Monday.
-By Margot Patrick, Dow Jones Newswires; +44 (0)20 7842 9451;
margot.patrick@dowjones.com
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Lug 2023 a Lug 2024