Canadian gold miner Eurasia Gold has postponed a $120m-$150m London equity offering after failing to gather enough interest from investors, some of which said the firm's pricing expectations were too ambitious.
Nomura and Uralsib were bookrunners for the sale, which was expected to take place in late March.
The move comes after Russian gold refiner GV Gold shelved a $200m London IPO in early February after investors scorned its aggressive valuation.
Toronto-listed Eurasia Gold has its main mining assets in Kazakhstan. It needs funds to expand gold output from 60,000 ounces to 200,000.
The deal was expected to attract investors, as the outlook for gold and silver prices is strong.
Baltabek Mukashev, Eurasia Gold's president and chief executive, said in a statement: "A postponement of the offering is the best course to preserve the stock value. Market turbulence has not allowed investors to concentrate fully on our value proposition."
Market participants said Eurasia Gold valued its enterprise at $360m-$400m, while Nomura and Uralsib reckoned it was worth $330m-$390m. Analysts had put a price tag of $300m-$350m.
One market analyst said Eurasia Gold and GV Gold were likely to resurrect their deals later this year, albeit at lower prices.
Germany
UniCredit has launched the Eu85m-Eu104m IPO of property company Polis Immobilien.
The deal comprises 6.191m shares, of which 5.14m are new and the rest sold by institutional investors Bouwfonds Asset Management Deutschland and Mann Immobilien-Verwaltung. They are being offered at Eu13.75 to Eu16.75.
The deal will close on Tuesday.