BRITISH COLUMBIA

Ivanplats seeks to raise $300 million in initial public offering, will be on TSX

10/16/2012 08:03 EDT | Updated 12/16/2012 05:12 EST
VANCOUVER - Mining venture Ivanplats Ltd., controlled by billionaire Ivanhoe Mines founder Robert Friedland, says it is seeking to raise $300 million in its initial public offering.

The Vancouver-based mining company said Tuesday it has filed a final prospectus in all provinces and territories.

The prospectus outlines that Ivanplats will sell 63.3 million shares at $4.75 per share.

If an over-allotment option is exercised in full, the total gross proceeds to the company under the offering will increase to $346 million.

If an over-allotment option is exercised in full, the total gross proceeds to the company under the offering will increase to $346 million.

The total equity estimated to be issued is $493 million, including pre-IPO bonds issued in 2011 and 2012 that will be converted to common shares.

Earlier reports have speculated the offering could be worth $1 billion.

Its shares have been conditionally approved for listing on the Toronto Stock Exchange under the symbol IVP and is expected to begin trading on Oct. 23.

The IPO market has largely been sluggish as companies have feared being undervalued or ignored as stock markets continue to be roiled by investor jitters over the state of the global economy. In such a climate, investors are less likely to take a risk on helping to finance a new public company.

In 2010, Toronto-based Porter Airlines announced they would make an IPO, but then reversed course, while SNC-Lavalin Group Inc. (TSX:SNC) cancelled a public offering of its subsidiary TransAxio Highway Concession Inc. due to ``adverse market conditions.''

TransAxio's public offering was expected to raise between $700 million to $900 million

Ivanplats has mining projects in the Democratic Republic of Congo, and South Africa. It is focused on the exploration and development of major copper, platinum, gold, nickel and zinc deposits.

Friedland stepped away from Ivanhoe Mines, now called Turquoise Hill Resources Ltd. (TSX:TRQ), earlier this year as part of a deal with Rio Tinto (NYSE:RIO), which holds a 51 per cent stake in the company, that also included a $3.3-billion financing package.

Friedland made a name for himself in the international mining community when he sold the still undeveloped Voisey's Bay nickel deposit in Labrador to Inco for more than $4 billion. Inco was later acquired by Brazilian mining giant Vale.

He also owns a large stake in Ivanhoe Energy Inc. (TSX:IE), an international heavy oil exploration and development company.