Steinmetz Mulls Hong Kong IPO for Koidu Diamond Mine
January 23, 12
(IDEX Online News) - The Beny Steinmetz Group (BSG) is considering a public float of its Koidu diamond mine in Sierra Leone on the the Hong Kong stock exchange, according to a report by the Financial Times.
The Koidu mine is expected to produce half a million carats this year and the BSG hopes to raise between $400 million and $600 million with its initial public offering and achieve a valuation of between $2 billion and $3 billion.
The BSG’s Steinmetz Diamond Group is one of the De Beers Diamond Trading Company’s (DTC) largest Sightholders. However, the diamond processing group’s assets will not be paired with those of the Koidu mine in the public offering. Instead, the BSG has created a new holding company called Octea for the mine and the public offering will be for Octea only.
Octea’s long-term plan is to increase Sierra Leone rough diamond production to 2.5 million carats annually.