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Nordgold plans IPO to sell 25% stake in London and Moscow

By Reuters

MOSCOW – Russia-focused gold producer Nordgold plans an initial public offering (IPO) of at least 25% of its existing shares in London and Moscow, it said on Thursday.

Nordgold, majority owned by Russian billionaire Alexei Mordashov and his sons Kirill and Nikita, was previously listed in London but delisted in 2017. It is aiming for a premium listing that would make it eligible for the FTSE indices.

“Now is the right time for Nordgold to seek a premium London listing,” Chief Executive Nikolai Zelenski said in a statement. “We look forward to sharing our story with potential investors over the coming weeks.”

Nordgold operates four mines in Russia, one in Kazakhstan, three in Burkina Faso and one in Guinea. It produced 1 million troy ounces of gold last year, earning core profit of $1 billion.

The company said it plans to boost output by 20% over the next five years and that its 2021 dividend payments would total $400 million.

Nordgold will not receive any proceeds from the offering. Citigroup, J.P. Morgan and VTB Capital are co-ordinators and joint bookrunners for the offering.