Nordgold postpones IPO due to poor market

摘要

Nordgold N.V., the goldmining subsidiary of Severstal, has postponed its EPO on the London Stock Exchange due to the unfavorable market, the company said.Financial market sources told Interfax yesterday that the bid book for the Nordgold IPO was not fully subscribed. Nordgold set the IPO price range at 300-390 pence per share at the end of January. The price valued that company at 2.5 billion-3.2 billion pounds sterling ($4.0-$5.1 billion). The Nordgold said in a statement that it believes that making an offer on the current market would undervalue the company, which would be unworkable for both it and Severstal. A source informed about the placement told Interfax that the company did not look into the possibility of reducing the EPO price in relation to the earlier announced guidance since this would put Nordgold's capitalization at the same level as Egypt's Centamin and West African Semafo, which produce 270,000 ounces and 250,000 ounces, respectively. However, Nordgold production for 2010 came to 589,000 ounces of gold and the company has plans to boost production in the future.