10/10/2005 Kazakhmys plc opens the London markets
10 October 2005
Kazakhmys plc opens the London markets
Kazakhmys is the largest producer of copper in Kazakhstan and one of the largest companies in the country. The company is also the first from Kazakhstan to achieve a primary listing on the Main Market. The listing will broaden and deepen Kazakhmys’ access to international capital to fund growth and is a strategic step toward the group becoming a world player.
Kazakhmys has raised £661 million through the global offer comprising approximately 58.4 million ordinary shares and 64.0 million existing ordinary shares. Based on the offer price of 540p per ordinary share, the company’s market capitalisation at admission is approximately £2.5 billion. The principal use of the proceeds will be to expand the group via organic growth and through acquisitions.
Yong Keu Cha, Chief Executive of Kazakhmys plc commented:
“We are delighted with the positive response to the Kazakhmys IPO. London is the home of choice for mining companies and by listing here we have access to the most sophisticated and experienced investors in the sector. Their investment will enable us to continue to take advantage of Kazakhstan's extraordinary mineral wealth, and deliver on our growth strategy to create value for our shareholders. We are very much looking forward to the next phase of our development as a listed company.”
Kazakhmys is the tenth largest copper cathode producer and the tenth largest mined copper producer in the world. As the largest producer of copper in Kazakhstan, its principal business is the mining, processing, smelting, refining and sale of copper and copper products, including copper cathode and copper rod. As by-products of its Kazakh copper operations, the group also processes, refines and sells zinc, gold and silver.
Kazakhmys’ corporate headquarters are situated in London and the company has approximately 66,000 employees worldwide. However, the bulk of the company's operations take place in Kazakhstan. Kazakhmys is able to take advantage of the country's rich energy resources and important geographic situation to produce and then export its products to world markets, notably the burgeoning Chinese copper market. It is the largest producer of copper in Kazakhstan and one of the largest companies in the country, operating open pit and underground mines and smelting and refining complexes across the region through sites in Zhezkazgan, Balkhash, and the East Region complexes. The group’s own power plants and coal mines provide vital energy sources for these operations.