Navoi Mining & Metallurgical Co. is planning a London IPO potentially valuing it at £4 billion. Rothschild & Co. is advising on the listing, expected in the latter half of the year. NMMC’s IPO aims to aid Uzbekistan’s privatization efforts and boost London’s IPO market, which has been struggling. The company produced 2.9 million ounces of gold in 2023 and significantly contributes to the national budget.
Navoi Mining & Metallurgical Co. (NMMC), one of the largest gold producers globally, is preparing for a possible initial public offering (IPO) in London that may value the state-backed company at approximately £4 billion ($5.2 billion). This potential listing, advised by Rothschild & Co., is anticipated to occur in the latter half of this year, as suggested by informed sources.
NMMC successfully raised $1 billion through bond issuance on the London Stock Exchange last year. Banks involved in this bond sale, including Citigroup Inc. and JPMorgan Chase & Co., are expected to be considered for roles in the forthcoming IPO, as per anonymous sources citing confidential discussions. However, these plans remain in preliminary stages, and specific details may evolve or face delays.
This IPO is part of Uzbekistan’s broader initiative to privatize numerous assets. For London, this listing could revitalize a sluggish IPO market, which has managed only $76 million in initial public offerings this year. Historically, the UK has attracted mining companies seeking public market investment, but recent low valuations have led notable firms to contemplate relocating their primary listings.
NMMC operates the Muruntau mine, recognized as one of the world’s most extensive open-pit gold mines, producing 2.9 million ounces of gold in 2023. The firm has a mineral resource base totaling 148 million ounces and plays a vital role in Uzbekistan’s economy, contributing nearly 20% of the nation’s state budget revenues while employing over 47,000 individuals across its mining sites and processing facilities.
In conclusion, Navoi Mining & Metallurgical Co. is poised for a significant IPO in London, potentially valued at £4 billion. This move is part of Uzbekistan’s strategy for privatization and aims to invigorate a stagnant IPO market in the UK. With strong production figures from its Muruntau mine and substantial contributions to the national economy, NMMC’s public offering could mark a pivotal moment for both the company and the London market.
Original Source: www.mining.com
