Ferrexpo plc, a Ukrainian iron ore producer, successfully raised approximately $100 million through an equity fundraise, a crucial step to avoid insolvency and restart its operations. This capital infusion is expected to strengthen the company's balance sheet, enabling it to resume exports to European and international customers and restore deferred expenditures necessary for production expansion.
The fundraise involved the placement of 269,309,091 new ordinary shares and a subscription for 179,539,393 new ordinary shares, all at an issue price of 16.5 pence per share. This price represents a significant discount of approximately 42.3% to the closing share price on April 30, 2026. A substantial portion of the funding, $50 million, came from Andriy Verevskyi, owner of the agricultural company Kernel, who will become a new cornerstone investor. Additionally, Ferrexpo's largest shareholder, Fevamotinico S.a.r.l., owned by Kostyantyn Zhevago, committed nearly $30 million to the fundraise.
The capital raise is vital for Ferrexpo, which faced a critical cash position, having dropped to approximately $26.4 million by late August 2026. The company had previously stated it only had enough financing to operate until mid-September. The $100 million is projected to cover immediate and short-term operating needs for the next 18 months, supporting the resumption of mining and processing operations in Ukraine and securing thousands of jobs. Following the successful fundraise, Ferrexpo's shares are set to resume trading on the London Stock Exchange on September 7, 2026, after being suspended since May 1, 2026, due to delays in publishing its 2025 financial results. In 2025, the company reported a revenue drop of 16% to $787 million and a net loss of $223.9 million.
