Ferrous Yanks London IPO

Brazilian miner Ferrous Resources says it has pulled a $300m-$400m London IPO owing to unfavorable market conditions. “We have taken the difficult decision to postpone the initial public offering as a result of the considerable volatility in the equity markets,” says Gordon Toll, executive chairman of Ferrous. He adds that the company still has around $500m in cash and will re-evaluate options when market conditions improve. Ferrous should be able to come back to market in around 6 months, says Liberum Capital in a research note, adding that the company does not need additional funds until H2 2011. The Minas Gerais-based iron ore miner had expected to list by the end of June and eventually reach a 25% float. The company claimed the IPO would have been the first by a Brazilian on London’s big board and that it could be a candidate for inclusion in the FTSE 250. JPMorgan Cazenove, Deutsche Bank and Morgan Stanley were managing the transaction. Ferrous tried to list in September 2008, but had to delay launch due to the global crisis. The miner was founded in 2007. It has 4 projects in Minas Gerais’ Iron Quadrangle and 1 in Bahia.