4th Sep 2026 09:07
(Alliance News) - Ferrexpo PLC on Friday said it has raised USD100 million from the sale of new shares to fund its iron ore production in Ukraine.
The placing and subscription, first announced on Thursday afternoon in London, comprised 448.8 million shares, about 73% of the company's previous total. They were sold at 16.5 pence each, a 42% discount to its 28.58p closing on April 30, the day before trading was suspended in London.
Ferrexpo shares remained suspended on Friday, but Ferrexpo said the new shares will be admitted to the London Main Market and dealings will resume on September 22. A general meeting to approve the share issue was called for the day before, on September 21.
The Baar, Switzerland-headquartered company said 269.3 million shares will be issued as part of the placing, which was run by brokers Panmure Liberum Ltd and Peel Hunt LLP.
In addition, Ferrexpo's largest shareholder, with a 49% stake, Fevamotinico Sarl, subscribed for 179.5 million shares. Fevamotinico's holding in the enlarged total will remain between 44% and 49%.
The placing includes a cornerstone commitment of USD50 million from Andriy Verevskyi, who bought 224.4 million new shares in Ferrexpo and will hold about 21% of the company's enlarged share total.
Announcing plans for the fundraise on Thursday, Ferrexpo said it believes it was needed "in order to support the working capital position of the group and fund ongoing operations".
"The board believes the net proceeds of the fundraise will be sufficient to meet the group's immediate and short-term operational requirements while operating at a reduced level for the next 18 months and to continue as a going concern."
Ferrexpo said it had USD26.4 million in cash as of the end of August. This represented USD17.8 million net cash after deducting lease obligations.
Interim Executive Chair Lucio Genovese on Friday said: "We are pleased to announce this important equity financing today which will provide the group with the strengthened balance sheet to restart production at our operations in Ukraine, upon completion of the fundraise. We welcome new international investors including a new cornerstone investor as a shareholder to our register and are grateful to our largest shareholder for its continued support as well."
Verevskyi is a "prominent Ukrainian businessman". He chairs Kernel Holding SA, an agricultural company and the largest producer and exporter of grains in Ukraine.
By Tom Waite, Alliance News editor
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