Sunday, June 27, 2010

African Barrick Gold starts book-building for Londons largest IPO in two years

By Garry White, Commodities Published: 6:00PM GMT 05 Mar 2010

Gold bars - African Barrick Gold starts book-building for London Gold bars - African Barrick Gold starts book-building for London"s largest IPO in dual years Photo: Alamy

The company, that is being spun off from Barrick Gold, has proposed book-building for the largest IPO in London given New World Resources in May 2008.

Canadian-listed Barrick, the world"s largest bullion miner, will list the Tanzanian resources as ABG on the London Stock Exchange. The new association will enclose in between 8pc to 10pc of Barrick"s assets, valuing the commercial operation at about �2.4bn.

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Barrick is offered 100m shares of ABG, believed to be at a 30pc bonus to the Barrick Gold primogenitor on a net-asset-value basis. The books are approaching to close on Mar 18.

ABG is approaching to be propelled in to the FTSE 100 at the reshuffle in Jun after it sells 25pc of the lengthened share collateral in the offering. There is an over-allotment grant of a serve 10pc of the equity if direct is strong. The association is approaching to lift about $1bn (�661m) on flotation.

ABG constructed 716,000 ounces of bullion last year and is approaching to cave 800,000 to 850,000 ounces in 2010. It had sum pot of 16.8m ounces at the finish of 2009 and plans to be producing 1m ounces inside of 4 years.

JP Morgan Cazenove and Morgan Stanley are corner bookrunners.