Ferrexpo To Raise USD 500 mln From London IPO

This morning, Ferrexpo, the holding company for Poltava Iron Ore (PGOK), posted intentions to float about USD 500 mln in London by selling new and existing shares. Proceeds from the sale will be used to fund iron ore projects, pay off existing debt and possibly acquisitions. According to the announcement, it is expected that Ferrexpo LLC will be included into the FTSE UK Index Series following the listing. Eugene Cherviachenko: We expect Ferrexpo’s IPO to translate into greater transparency for the group and shift our valuations for PGOK closer to the “transparency” scenario. We are placing our target and recommendation for PGOK under review and will come out with a detailed report shortly.