Fed tests gold upleg
Gold’s outlook and fundamentals remain really bullish.
Russian gold miner Uzhuralzoloto (UGC) on Wednesday raised 7 billion roubles ($78 million) in the Moscow Exchange’s second-largest initial public offering (IPO) so far this year, pricing at the lower end of its range.
Russia’s fourth-largest gold miner has shrugged off British sanctions on its owner, Konstantin Strukov, to push ahead with the listing and said it gave the company a market value of around 117 billion roubles.
The valuation implies a 15-20% discount to Russia’s largest gold miner Polyuz, CFO Artem Kletskin said last week.
UGC set the price for its IPO at 0.55 roubles per share, the lower end of its range. By 1344 GMT, its shares were trading at 0.59 roubles per piece.
Russian share listings have been few and far between since Russia sent its troops into Ukraine in February 2022, and have generally seen small volumes and been dependent on Russian investors after an exodus of Western capital.
Fuel retailer Eurotrans’ listing on Tuesday was the biggest capital raise in a Russian IPO this year.
UGC said it had attracted more than 70,000 new investors during its IPO and that aggregate investor demand had exceeded supply many times over. It plans to use the raised funds to reduce its debt.
($1 = 89.7230 roubles)
(By Marina Bobrova, Anastasia Lyrchikova, Olga Popova and Alexander Marrow; Editing by Jacqueline Wong, Jason Neely and Emelia Sithole-Matarise)
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