Russian gold producer eyes London IPO

January 19th, 2012 - 5:51 pm ICT by IANS  

Moscow, Jan 19 (IANS/RIA Novosti) One of Russia’s largest gold producers, Uzhuralzoloto Group, may hold an initial public offering in London to raise $200 million this spring, Kommersant business daily said Thursday quoting banking sources.

The company might sell 25 percent of its shares at the London Stock Exchange, sources said.

“We are absolutely ready (for the IPO), we have complied with all requirements…,” board chairman Konstantin Strukov told the paper, adding Uzhuralzoloto had not yet chosen a lead manager. Banking sources think Renaissance Capital might lead the company’s IPO, Kommersant said.

An investment banker told the paper the company was unlikely to be in high demand as investors are primarily seeking high liquidity in an unstable world market.

Uzhuralzoloto has tried to hold an IPO in 2008, in early 2009 and at the end of 2011, but postponed it each time due to unfavourable market conditions.

The company owns gold deposits with overall reserves at about 12.5 million ounces, in the Chelyabinsk region of the Urals, in the Baikal and Krasnoyarsk regions, and the Khakassia republic in East Siberia.

–IANS/RIA Novosti
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