Nordgold NV, the gold producer controlled by Russian billionaire Alexey Mordashov, plans to seek a “premium listing” in London and a larger free-float to boost its market value.
“Our intention to seek a premium listing will materially improve the valuation of the business and positively impact the returns we can generate for our shareholders,” Chief Executive Officer Nikolai Zelenski said in a statement on Monday.
The company plans to raise its free float to more than 30 percent. Mordashov increased his stake in the gold miner to 88.9 percent this year, leaving 11 percent of its shares publicly owned and available for trading, Nordgold said last week.
The company may issue new shares, Zelenski told investors in London. Earlier on Monday, he said in an interview with Bloomberg Television that the company may increase its free float in the next 12 months.
Nordgold, created from a 2012 spinoff of assets acquired by Mordashov’s steelmaker PAO Severstal, has almost doubled in value this year after starting a share buyback in January. The gold producer has global depositary receipts listed in London and assets in Russia, Kazakhstan and Africa.