London-based gold mining company Petropavlovsk Group (LSE: POG) is hoping to raise between US$366 to $500 million from an Initial Public Offering (IPO) on the Hong Kong stock exchange of IRC Ltd, the holding company of its non-precious metals division.
The company will offer the IPO on October 14, 2010. It is hoping to offer 1.325 billion shares at HK$2.2 to $3 per share.
About 1.070 billion new shares of IRC and 255 million outstanding securities would be offered on October 13, 2010. The group had acquired IRC after Peter Hambro merged with Aricom PLC.
The group will stay the largest share holder of IRC but hopes to attain a market capitalization of a price range of HK$ 7.46 billion. IRC mines titanomagnetite and ilmenite from which iron ore is produced.
With a Hong Kong listing it will be able to supply to China which is one of the world’s largest buyers of iron ore.
The company's operations are based in the Amur Region of Eastern Russia. The region offers a wealth of mineral deposits and provides a strong infrastructure for the company’s main assets.
The Pokrovskiy and Pioneer mine are both within proximity to the Trans-Siberian Railway. The company has two principal mines at Pokrovskiy and Pioneer, which are its main producers. It also continues to develop other mines in Malomir, Tokur, Yamal Zoloto, and Voroshilovskoye.