HONG KONG — Strikeforce Mining & Resources, the fifth-largest primary molybdenum mine producer in the world, plans to raise between $150 million and $200 million from a Hong Kong initial public share offering, a source close to the deal said Monday.
SMR, which kicked off pre-marketing on Monday, is owned by billionaire Oleg Deripaska's En+ Group Ltd.
SMR is the biggest ferromolybdenum producer in Russia, accounting for 90 percent of national output last year. In 2009, SMR's molybdenum concentrate output rose by 14.6 percent compared with 2008 to 10,458 metric tons, while ferromolybdenum output increased by 15.2 percent from 2008.
Unlike United Company RusAl's January share offering, in which Hong Kong retail investors were not allowed to participate, SMR was expected to hold a retail offering in Hong Kong, the source said.
Shares of RusAl closed up 2.16 percent at 8.50 Hong Kong dollars on Monday but are still trading 21 percent below the IPO offering price.
The SMR deal is being handled by BOC International, Deutsche Bank and Renaissance Capital.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.