Gold producer Polyus plans to offer 7% of its shares under a secondary public offering (SPO) on the London Stock Exchange and the Moscow Exchange, the company said in a statement on June 5.
The company has started a pre-marketing campaign and will hold a roadshow for the offering in the next two weeks, a banking source reported.
Another financial source said that the price range would be announced next week.
About $400 million worth of new shares and existing securities, including global depositary receipts (ADRs) trading in London, are expected to be offered.
The company’s major shareholder Polyus Gold International Limited (PGIL) controlled by businessman Said Karimov and holding 91.73% in Polyus and Polyus Gold plc are the selling shareholders.
Goldman Sachs, J.P. Morgan, Sberbank CIB and VTB Capital act as global co-coordinators and co-bookrunners, while BMO Capital Markets, Gazprombank and Morgan Stanley act as co-bookrunners. PGIL may provide an option for 10% of the offering to organizers.
Sberbank CIB has appraised Polyus at $10.8-13.1 billion prior to the SPO, a banking source familiar with the matter reported.
Polyus will use the funds for debt repayment, funding operating activities and fields development projects, capital expenditure and other general corporate purposes. (Prime/Ukrainian metal)