Nyrstar to raise EUR 2.3 bln in flotation
15 October 2007, BRUSSELS - Newly created zinc producer Nyrstar unveiled plans on Monday to raise up to EUR 2.3 billion via a stock market flotation aimed at tapping growing investor interest in booming base metals.
15 October 2007
BRUSSELS - Newly created zinc producer Nyrstar unveiled plans on Monday to raise up to EUR 2.3 billion via a stock market flotation aimed at tapping growing investor interest in booming base metals.
The Belgium-based company began operations in September after its two 50:50 shareholders, Umicore of Belgium and Zinifex of Australia, merged their zinc smeltering businesses earlier this year.
Initially, 70 percent of Nyrstar's stock is to be offered at EUR 18 to EUR 23 per share, raising between EUR 1.35 and EUR 1.6 billion.
If investor demand proves strong enough, all of Nyrstar's shares will be put on offer, raising as much as EUR 2.3 billion if the stock is sold at the top end of the price range.
The offer period, which started Monday, runs until October 26 and trading is expected to begin in Brussels around October 29.
To sweeten the offer for investors, Nyrstar is to pay a dividend next year equal to at least 30 percent of its net profit for the last quarter of 2007.
Like other base metals, zinc has been enjoying a boom in recent years as fast growing developing countries such as China source raw materials from around the world.
Nyrstar chief executive Paul Fowler said the group would be "very active" in looking at the zinc market for consolidation opportunities following its listing in Brussels.
[Copyright afp 2007]
Subject: Belgian news