The international gold mining company Nordgold of the Alexei Mordashov family has decided to postpone its public offering on the London Stock Exchange (LSE), the company said.
“Recent comments from the Central Bank indicating a more rapid rise in interest rates have created significant uncertainty and volatility in the resource sector, affecting, among other things, the price of gold and stocks. Nordgold decided that for this reason it would be unwise to conduct an IPO at this stage, ”explained Nikolay Zelensky, CEO of Nordgold.
For how long the company is postponing the IPO, he did not specify.
Nordgold announced its intention to conduct an IPO on the LSE on June 3. The gold miner indicated that after the placement of shares, the volume of free float will be at least 25%. The company hoped that as a result of the listing, it will be able to get into the FTSE indices.
Previously, Nordgold was already traded on the London Stock Exchange. The company entered it in 2012, and in February 2017 announced a delisting. The gold miner explained this decision by his “underestimation”.
Nordgold also announced plans for a secondary listing on the Moscow Exchange on June 3. On June 9, the press service of the trading floor announced that the company’s common shares were admitted to trading.
Nordgold is an international gold mining company. Its production volume exceeds 1 million ounces per year. Nordgold manages nine factories in Russia, Kazakhstan, Burkina Faso and Guinea. 35% of the gold miner belongs to Alexei Mordashov, who this year topped the Forbes list of 200 richest businessmen in Russia. The publication estimated his fortune at $ 29.1 billion. Another 65% of Nordgold is owned by KN-Holding, which was previously owned in equal shares by Mordashov’s sons, Kirill and Nikita. On January 20, the Federal Antimonopoly Service (FAS) approved Kirill’s petition to increase his stake in KN-Holding to 100%. This happened after Nikita was expelled from the Higher School of Economics and was sent to the army.
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