African gold producer Randgold Resources priced its offering of six million shares at $35,25 per share on Thursday, resulting in gross proceeds of $211,5-million.
The offering price represents a 3,2% discount to the closing price of Randgold’s United States listed shares on Wednesday of $36,42.
The share issue, representing 8,7% of the firm’s share capital, will be used mainly to finance the firm’s Tongon mining project in Côte d’Ivoire, the firm said on Tuesday when it first announced the equity raising.
The global offering also consists of an over-allotment option of 900 000 additional shares, which together with the main offering equals about 10% of current issued share capital.
The company chose equity to fund its new mine in Côte d’Ivoire because shareholders refused to fix gold prices in order to qualify for banks’ debt financing, its chief executive told Reuters on Wednesday.
HSBC Bank is sole global coordinator and joint bookrunner while Citigroup Global Markets is joint bookrunner of the offering. – Reuters