Billionaire Prokhorov’s Intergeo Said to Revive Canada IPO Plans
Intergeo MMC Ltd., a mining company controlled by Russian billionaire Mikhail Prokhorov, is reviving plans for a Canadian initial public offering that may raise about $200 million, two people familiar with the matter said.
Intergeo intends to resubmit its preliminary prospectus for a share sale and Toronto listing in the first quarter, the people said, asking not to be identified because the information isn’t public.
The company, which hired Morgan Stanley (MS) and BMO Capital Markets Corp. for the IPO, originally registered its prospectus in May and planned to sell a stake as large as 10 percent for $100 million to $500 million. The deal didn’t proceed at the time because of unfavorable market conditions, the people said.
Andrey Belyak, a spokesman in Moscow for Prokhorov’s Onexim Holding, which handles the billionaire’s assets, said he wasn’t able to make any immediate comment.
Prokhorov, the 68th richest individual on the Bloomberg Billionaires Index with $14 billion, is selling some of his industrial assets and keeping financial ventures. He has agreed to sell his 37.8 percent stake in Polyus Gold International Ltd. (PGIL) to businessmen Gavriil Yushvayev and Zelimkhan Mutsoyev, two people with knowledge of the plan said Jan. 29. The stake is valued at about $4.1 billion at current share prices.
Prokhorov retained some mining licenses when he sold his stake in OAO GMK Norilsk Nickel (GMKN), Russia’s largest metals producer, in 2008. At the time, he pledged to form a global mining company from scratch to rival Norilsk, with potentially $10 billion of investment in five years.
Intergeo holds rights to the Ak-Sug copper and Kingash nickel projects in southern Siberia, last year’s IPO prospectus shows. Ak-Sug holds 1.8 million tons of copper resources, while Kingash contains 310,000 tons of nickel, according to the prospectus.
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