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Ferrous pulls London float

City A.M. Reporter
BRAZILIAN iron ore firm Ferrous Resources yesterday postponed a planned listing in London that would have raised up to $400m (£273m) in one of the biggest flotations this year.

“We have taken the difficult decision to postpone the initial public offering (IPO) as a result of the considerable volatility in the equity markets,” executive chairman Gordon Toll said yesterday.

The UK mining index fell one per cent yesterday and has shed 20 per cent since touching a peak on 6 April.

Investors have been worried about a slowdown in metals demand from China, the European debt crisis and a planned “super” tax on mining profits in Australia.

Ferrous had not yet launched its IPO roadshow when it decided to postpone the listing.

The company announced on 17 May that it planned to raise $350m-$400m in a listing on the main board of the London Stock Exchange, which would also include sales by existing shareholders.

Toll said the group remained in a good position to continue development of it mine projects since it had about $500m in cash.

Toll said he would reevaluate a possible float when market conditions improved.