Russia's top silver and second-largest gold producer said last December it plans to place common shares on the Russian Trading System (RTS) stock exchange and the Moscow Inter-Bank Currency Exchange (MICEX), and GDRs on the London Stock Exchange, representing 30% of its charter capital, during an initial public offering (IPO) in February.
"The company offers investors unique access to a vast portfolio of premium gold and silver assets with a low prime cost. We possess successful experience in developing mining deposits from "scratch" and turning them into operating production facilities, and also boast a top-class selection of geological prospecting projects and projects at the stage of development," Polymetal General Director Vitaly Nesis said.
Polymetal is wholly owned by Nafta Moskva, which offers for sale 44 million common shares under its ownership in the form of shares and GDRs (one GDR representing one share). Additionally, Polymetal offers 44 million new shares in the form of GDRs.
Polymetal, which is thought to be worth $2.3-3 billion, expects to raise more than $500 million from the IPO to reduce its debt burden, finance operations within the framework of a joint venture with AngloGold Ashanti, make partial payments on previous acquisitions and develop its business, the company said in a news release.
The London branch of Deutsche Bank AG, Merrill Lynch International and UBS Limited are joint global coordinators and joint bookrunners, while RBC Capital Markets is the lead co-manager for the global offering.
