https://www.miningweekly.com

Nordgold postpones London IPO

22nd June 2021

By: Reuters

  

Font size: - +

Russia-focused gold producer Nordgold said on Tuesday it had decided to postpone the initial public offering (IPO) of its shares in London, the largest such deal to withdraw from a stock market listing in recent weeks.

Across Europe, the Middle East and Africa, companies have cancelled plans to list as investors have shown signs of fatigue following a record number of offerings, some of which have performed poorly after listing.

Nordgold, majority owned by Russian billionaire Alexei Mordashov and his two sons, planned to offer 25% or more of its shares for a premium London listing. Sources have said it was targeting a valuation of $5-billion.

Its cancellation could worry some of the 30 other companies expected to launch deals from September onwards, especially those in the gold and resources sector.

The gold market had its worst week in more than a year, falling by 6% last week after US Federal Reserve signalled interest rates could rise into 2023.

"Recent central bank comments indicating an acceleration in expected interest rate rises have created significant uncertainty and volatility in the resources sector, in particular impacting gold and gold equities," CEO Nikolai Zelenski said in a statement.

"Nordgold has determined that it would therefore not be sensible to pursue an IPO at this particular juncture," he said.

The gold producer, which operates mines in Burkina Faso, Guinea, Kazakhstan and Russia, did not say when it would be willing to offer its shares again.

Edited by Reuters

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION