Mexican Silver Miner Pricing Jumbo IPO

An up to $2.2bn London IPO for Mexican precious metals miner Fresnillo is moving ahead and terms are set to emerge today. Fresnillo seeks to sell a total of 160.65m shares in a 555p-700p range via JPMorgan Cazenove, which has sole books. The company is looking to place $900m worth of primary shares, with the remainder in secondary stock, say bankers on the deal, which was heard gaining momentum Thursday. The FTSE closed slightly higher Thursday, driven by mining stocks, while US stocks were also firmer. Also helpful is continued strength in gold and silver prices. Canacord Adams, Citi and UBS are co-managers. Settlement is scheduled for May 14. Penoles intends to retain at least 75% of the ordinary shares of Fresnillo plc on completion of the offer. A listing without float will also be obtained on the Mexican Stock Exchange for Fresnillo.