Polyus Gold International Ltd., Russia’s largest producer of the metal, jumped to the highest in five weeks in U.S. trading after it said shareholders approved a plan for a primary listing of shares on the London Stock Exchange.
Polyus’s American depositary receipts rose 4.3 percent to $2.94 in New York, the highest since May 3. The miner was the biggest gainer on the Bloomberg Russia-US 14 Index of Russian companies traded in New York today and over the past week. The benchmark advanced 0.5 percent to 85.60.
“The market’s reaction to the decision is positive and the stock is gaining,” Mikhail Stiskin, chief analyst for metals and mining at Troika Dialog in Moscow, said by phone today. Stiskin recommends investors hold the company’s shares and said he doesn’t plan to revise his recommendation in the near term.
Polyus plans a primary listing of shares on the LSE on or about June 19, according to the company’s statement today. The company seeks the LSE listing to expand its access to funding from international investors, said analysts, including Valentina Bogomolova at UralSib Capital in Moscow. Polyus will offer to convert its global depositary receipts traded in London into the shares, the company has said in a May 17 statement.