Ferrexpo shares face suspension after delay to $100m fundraising

(Sharecast News) - Ferrexpo warned on Tuesday that its shares faced suspension, following a delay to a vital $100m fundraising.

The Ukraine-focused producer of iron ore pellets, which is listed in London, is seeking to shore up its finances after a difficult period, including the outbreak of war, lower commodity prices and higher costs. It believes that an equity fundraise of at least $100m is currently the only viable solution to meet its ongoing obligations and provide sufficient working capital.

On Tuesday it confirmed it had received indicative expressions of interest to participate from institutional investors which, in aggregate, are in excess of $100m. However, the interest is conditional on certain terms and conditions which Ferrexpo said were not possible to achieve within the timeframe required.

As a result, it will now not be able to publish results for the year to December by 30 April, the final date allowed under City rules.

Ferrexpo continued: "As a consequence...the company expects that it shares will be suspended from listing and trading from 0730 BST on 1 May, until the audit is completed and the 2025 annual report and accounts are published, which itself will require the execution of an appropriate funding solution in order for the financial results to be prepared as a going basis."

As at 0930 BST, the FTSE All Share-stock was down just over 1% at 31.9p. The shares have now shed 56% so far this year.

The largest shareholder in Ferrexpo, which is headquartered in Switzerland, is Fevamotinico, with a 49% stake. The Ukraine government has withheld VAT refunds worth around $12m due to sanctions on Kostyantyn Zhevago. The Ukrainian billionaire is one of three beneficiaries of a trust that owns Fevamotinico.

Ferrexpo said Fevamotinico was supportive of the intended fundraise, and that talks with both existing and potential new institutional investors were ongoing.

See latest RNS on Investegate