Russian gold miner Nordgold is planning a big listing in London
(Kitco News) -There is a new player in town and they could be one of the biggest. Nordgold is planning to IPO in London and wants to float at least 25% of their company. According to their website, Nordgold is an international gold producer with a business that spans from America to Siberia. They say they are guided by a strategy focused on finding, developing, and streamlining assets, and have a proven track record of creating value for stakeholders.
Nordgold is currently controlled by the family of billionaire Alexey Alexandrovich Mordashov. Mordashov (born 26 September 1965) is a Russian billionaire businessman. He is the main shareholder and chairman of Severstal, a Russian conglomerate with interests in metal, energy and mining companies. According to Forbes he has a net worth of $32.2bln and also owns about 30% of TUI Group, one of the biggest travel and tourism companies in the world.
Recently the Russian lost a furious battle with China's Shandong Gold over Australian company Cardinal Resources. A long-running battle between Nordgold and China's Shandong Gold over Cardinal Resources took a fresh turn, after the Russian gold miner matched Shandong's bid of A$1 per share, over double the companies share price at the time. Cardinal has said it will provide an update to shareholders as soon as it is able. It has now delisted its shares from the Australian stock exchange after the board accepted the Chinese offer.
In regards to their plans in London, the company said "Following a record year in 2020, and with a low cost, low risk development pipeline centred on the highly prospective Gross Region in Russia, now is the right time for Nordgold to seek a premium London listing," Chief Executive Officer Nikolai Zelenski said in a statement Thursday.
The miner has operations in West Africa, Kazakhstan, and Russia. It delisted from the U.K. bourse in 2017 after the board said it wasn't fairly valued by investors. It seems that the firm is now having a second bite at the cherry. Mordashov, 55, transferred 65% of Nordgold to two of his older sons in 2019. The younger of them, Nikita, was expelled from university this year and will serve his term in the army, leaving his brother Kirill temporarily in control of the stake. A spokeswoman for Mordashov said this was a "technical deal" within the family.Nordgold says its mission is to provide forward growth for the business and value to its shareholders and all other stakeholders.