Nord Gold PLC confirmed its plans to sell shares on the London Stock Exchange as it highlighted “significant interest” among potential investors.
No new funds will be raised, instead existing shares held by major shareholders Alexey Mordashov, Kirill Mordashov, and Nikita Mordashov will be sold to new investors.
The company is expecting the London float, which follows a listing in Moscow, to occur in late June or early July.
It is expected that the listing will see a free float of around 25% of the company’s share capital, making the gold producer eligible for inclusion in FTSE UK indices.
Nord Gold describes itself as a ‘pure-play’ internationally diversified gold producer, with over one million ounces of production per year. It has nine mines in four countries – Russia, Kazakhstan, Burkina Faso and Guinea.
“The significant interest shown by potential investors has been very encouraging, giving us the confidence to move forwards with our proposed premium listing on the London Stock Exchange,” said Nikolai Zelenski, Nord Gold chief executive.
“Nordgold is a one million ounce plus gold producer, with a globally diversified asset base, a proven track record of new mine development and ambitious plans for future production growth centred on our strong position in the highly prospective Gross Region.
“The combination of scale, growth and a commitment to shareholder returns is expected to leave Nordgold well positioned to continue to create value for all stakeholders.”
The shares are being offered to institutional and professional investors, with Bacchus Capital Advisers supporting the share sale along with sponsor Citigroup and bookrunners JP Morgan, VTB Capital, BMO Capital, Credit Suisse, Gazprombank, and Renaissance Securities.
Stockbroker Peel Hunt is additionally acting as lead manager for the offer.
Alexey Mordashov, Kirill Mordashov, and Nikita Mordashov currently own 35%, 32.5% and 32.5% respective stakes in the company.