Kazatomprom, the world’s largest producer of nuclear fuel uranium, has secured investors for its listing of 15 per cent of the company in London this month, according to people familiar with the process.
The company, which is owned by the state of Kazakhstan, is looking to raise up to $600m in the listing, which would value it at $4bn. It’s already secured the backing of investors for the sale, the people said this week.
The listing comes amid a rebound in uranium prices, which hit their highest level in over two years this week. The raw material, which is used in nuclear reactors to produce electricity, has been one of the best performing commodities of 2018, rising almost 40 per cent from its April lows.
One factor helping to support the price has been a string of mine closures, which have forced producers such as Canada’s Cameco to buy volumes in the spot market to fulfil long-term sales contracts.
Uranium hit $28.75 per pound on Friday, its highest level since March 2016. Kazatomprom is looking to price shares between $11.6 and $15.4 a share, it said last month.
Source: Financial Times