nyrstar ipo : 20 euros per share

Mid range of expectations - approx AUD1.9B to ZFX


Nyrstar to price IPO at about 20 euros/share
18 Hours,44 minutes Ago




BRUSSELS - Belgium’s Nyrstar UMI.BR ZFX.AX, the world’s biggest producer of zinc, is likely to set the price of its initial public offering at about 20 euros per share, Belgian daily De Standaard said on Saturday.



Nyrstar, created in mid-September after the merger of the zinc smelting assets of Belgium’s Umicore UMI.BR and Australia’s Zinifex Ltd ZFX.AX, said earlier this month its would price the shares between 18 to 23 euros.

A price of 20 euros per share would set the value of the firm at 2 billion euros ($2.87 billion).

De Standaard also said, without naming its source, that the tranche for instituional investors, which is 90 percent of the total, was two to three times oversubscribed.

The paper also said there was sufficient retail demand to fully subscribe the 10 percent for individual investors.

In the largest IPO since Belgian telecoms group Telenet TNET.BR in 2005, the shares will be listed on the Euronext Brussels stock exchange on Monday amid strong demand for zinc due to a global supply shortfall.

Nyrstar produces over 1 million tonnes of zinc a year, overtaking rivals Korea Zinc 01030.KS and Xstrata XTA.L.

Following its listing, Nyrstar said it intended to pay a dividend of a minimum of 30 percent of consolidated net profit after tax.

Nyrstar—whose name is based on the old Norse word nyr, meaning new—will be chaired by Julien De Wilde, former chief executive of Belgian steel cord and wire maker Bekaert BEKB.BR.

UBS Investment Bank, Deutsche Bank and Goldman Sachs International are joint global coordinators on the offering.