CALGARY — Zinc miner Nexa Resources S.A. made its listing debut on the Toronto Stock Exchange Friday as part of a dual listing that raised less than initial estimates.
The company priced the 31 million listed shares (TSX:NEXA), also listed on the New York Stock Exchange, at US$16 a piece to pull in an expected US$496 million.
Nexa had said in earlier filings that it expected to raise up to US$651 million by pricing the shares between US$18 and US$21 per share.
Company CEO Tito Martins said he's pleased with the offering and plans to spend the proceeds on a new mine in Brazil as well as on a brownfield site in Peru.
"To be able to develop those project, we feel the best way is to access the capital market," he said.
Martins added that the listing gives the company more flexibility for the future, and that Canada was a natural listing for the company while the New York listing adds liquidity.
"Clearly, the Canadian environment is the proper one for a mining company. Companies of our size, they're very well traded in the TSX."
The Luxembourg-based company, which recently changed its name from Votorantim Metais Holding S.A., says it's one of the five largest zinc producers in the world with mines in Brazil and Peru.
TSX CEO Nick Thadaney said in a statement that the listing is one of the largest mining IPOs in the exchange's history.
Nexa's listing marks the third mining IPO on the TSX in the last two weeks, including Titan Mining Corp. (TSX:TI) and Ero Copper Corp. (TSX:ERO) last week.
The company's share price was up US$1.80, or 11.3 per cent, to US$17.80 in mid-afternoon trading on the NYSE.