Strikeforce Mining Seeks $150M to $200M From Hong Kong IPO

"Strikeforce Mining Seeks $150M to $200M From Hong Kong IPO | AboutHK.Com - More Information About HK"

Reuters

Strikeforce Mining & Resources, the fifth-largest primary molybdenum mine producer in the world, plans to raise between $150 million and $200 million from a Hong Kong initial public share offering, a source close to the deal said Monday.

SMR, which kicked off pre-marketing on Monday, is owned by billionaire Oleg Deripaska's En+ Group Ltd.

SMR is the biggest ferromolybdenum producer in Russia, accounting for 90 percent of national output last year. In 2009, SMR's molybdenum concentrate output rose by 14.6 percent compared with 2008 to 10,458 metric tons, while ferromolybdenum output increased by 15.2 percent from 2008.

Unlike United Company RusAl's January share offering, in which Hong Kong retail investors were not allowed to participate, SMR was expected to hold a retail offering in Hong Kong, the source said.

Shares of RusAl closed up 2.16 percent at 8.50 Hong Kong dollars on Monday but are still trading 21 percent below the IPO offering price.

The SMR deal is being handled by BOC International, Deutsche Bank and Renaissance Capital.