OREANDA-NEWS. February 07, 2011. The gold-mining subsidiary of Severstal, Nordgold N.V. may lower the price for its IPO, due on the London Stock Exchange. The lead managers, Credit Suisse, Morgan Stanley and Troika Dialog, are considering the downgrade towards the lower end of the announced price range.

The IPO target range was initially set at GPB 3.00-3.90 per share. Credit Suisse valued 100% of the company at USD 4.5-5.3 bn, while Morgan Stanley’s valuation was USD 4.3-5.7 bn. If the bookrunners take their 15% option, Nordgold could have up to 29% of shares put on the IPO. The company plans to use the IPO proceeds to repay debts to Severstal and finance development programs, including new projects and potential M&As.