Molymet Closes Books on Equity FO

Chile’s Molymet has closed books on an approximately $260m equivalent equity follow-on, with announcement of the price and allocations expected today. The metals processor was set to announce this morning the exact number of shares sold, along with pricing and allocations, according to a banker on it. The banker notes the book was about 9x oversubscribed. The Gianoli, Mustakis and Matte families, which hold 96% of Molymet, have waived priority rights to ensure a broad sale to the public, the company says. Banchile Citi and IM Trust are managing the sale, which follows a lengthy roadshow that included domestic, South American, US and European stops. Molymet’s 4-year expansion plan is aimed at fulfilling growing demand for molybdenum, a copper by-product used to strengthen steel, as the world economy recovers and steel consumption grows in Asia. Molymet shares closed Tuesday at CLP11,992.