Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Polymetal's IPO Shares Priced at About $7.75

Polymetal, the world's fifth-largest silver producer and the latest Russian miner to list in London, is expected to price its initial public offering at around $7.75 per share, a market source close to the offering said

Tuesday.

"It will be around $7.75," the source said, referring to the pricing, adding that it was due Tuesday evening. Polymetal is offering up to 30 percent of its shares, half of them new, in the IPO.

Polymetal officials were not immediately available for comment.

The company set a price range Jan. 30 of $7.25 to $9.50 per ordinary share and per Global Depositary Receipt for the IPO, valuing the company at between $2.3 billion and $3 billion.

The IPO has been oversubscribed, with the book covered by Feb. 1, in contrast to the planned listing of another Russian gold miner, GV Gold, which was pulled this week due to slow demand. Bankers have reported heavy Russian demand for Polymetal.

Polymetal is hoping to cash in on investor demand for gold, which rose nearly 23 percent in value last year, and silver, up 46 percent, in a commodities boom that has spurred several Russian metals producers to list.

Polymetal will use proceeds from the float to repay debts and finance development of mining projects in Russia, including a joint venture with South Africa's AngloGold Ashanti.

Polymetal is owned by Nafta-Moskva, an investment company headed by billionaire Suleiman Kerimov.