Australian mining supplies business Molycop is expected to launch a global roadshow in October ahead of its planned A$1 billion ($638.30 million) initial public offering the following month, according to two sources with direct knowledge of the matter.
The new share sale would be the largest in Australia in nearly two years with $528 million raised in IPOs in the country so far this year, down nearly 14% compared with the same time last year, Dealogic data showed.
The sources could not be named as the information was not yet made public. Molycop and its ownership group, American Industrial Partners, declined to comment.
Australia is on track for one of its worst years for IPOs in a decade, according to Dealogic data, due to a sharp rise in borrowing costs, high inflation and the global financial market volatility.
Molycop, which was sold out of the liquidated industrial business Arrium in 2016, is the world’s largest manufacturer of steel balls to grind ore, among other mining consumable items.
The deal aims to raise A$1 billion, the source said, but added final size of the transaction could change depending on market conditions. A targeted valuation for Molycop in the IPO has not been decided yet, the two sources said.
A global roadshow will begin in October, initially with analysts from the banks working on the IPO to brief investors ahead of a global management tour, the sources said. Cornerstone investors will be courted during the roadshow to lock in stakes ahead of the books opening.
Molycop and AIP are aiming to open the IPO bookbuild in November, the sources said, but cautioned that the timetable could change between now and a final decision being made.
Reuters