Published: January 17, 2011
Severstal subsidiary to be spun off in London listing.
Russian steel group Severstal plans to spin off its gold producing division in an IPO in London.
Nord Gold will use the proceeds of its listing to pay back loans from Severstal and to fund its growth. It has yet to set a date for the IPO or to confirm how much it hopes to raise.
Morgan Stanley is sole sponsor to the IPO. Credit Suisse and Morgan Stanley are joint global coordinators. Credit Suisse, Morgan Stanley and Troika Dialog are joint bookrunners. Cannacord Genuity is co-manager.
Nord Gold owns eight producing projects, two development projects and several exploration projects across Burkina Faso, Guinea, Kazakhstan and Russia.