Molymet Follow-On Goes at Discount

Chile’s Molymet has priced a CLP127.44bn ($265.5m) equity follow on, selling 12.3m shares at CLP10,350, representing a 13.7% discount to the previous CLP11,992 close. Shares closed at CLP10,901 Wednesday following pricing in the morning. The metals processor drew CLP1.165trn in orders from 5,234 accounts, it says. Molymet says about 20% went to pension funds, with other domestic and international institutional investors making up 50% of the sale, and retail investment claiming the remaining 30%. The sale serves to increase the liquidity of Molymet’s float and raise funds for expansion. Its 4-year growth plan aims to fulfill growing demand for molybdenum, a copper by-product used to strengthen steel, as the world economy recovers and steel consumption grows in Asia. 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 managed the sale, which follows a lengthy roadshow that included domestic, South American, US and European stops.