Ferrexpo plc, a London-listed producer and exporter of premium iron ore products, has announced plans for an equity capital raise aiming to secure approximately $100 million. This fundraise is deemed crucial for the company's survival, as its cash position has significantly declined to $26.4 million as of August 28, 2026, down from $101 million at the end of 2024. Without this capital injection, the company estimates it can only operate until the end of October 2026.
The proposed fundraise will consist of two parts: a non-pre-emptive conditional placing of new ordinary shares to raise about $60 million, which includes a cornerstone commitment of $50 million, and a conditional subscription by its largest shareholder, Fevamotinico S.a.r.l., for approximately $40 million. The issue price for these new ordinary shares is set at 16.5 pence per share, representing a significant discount of approximately 42.3% to the last traded share price of 28.6 pence before the suspension of trading on May 1, 2026. The trading halt was initiated due to delays in publishing audited consolidated accounts.
The net proceeds from this capital raise are intended to strengthen Ferrexpo's liquidity, support the resumption and continuation of operations at a reduced level for the next 18 months, and ensure the group remains a going concern. This financial bolstering is critical amidst ongoing operational and financial constraints, including the war in Ukraine, challenges in reclaiming VAT refunds, and various legal proceedings involving its subsidiary, Ferrexpo Poltava Mining. The company's shares are anticipated to resume trading on September 7, 2026, following these announcements.
