Canada-based Barrick Mining has filed for an initial public offering (IPO) of its North American business in New York, marking a major development in one of the most anticipated public listings in the global gold mining industry. The new entity, American Barrick Gold, will be listed on the New York Stock Exchange under the ticker symbol ABGC, according to filings with the US Securities and Exchange Commission. Goldman Sachs, BofA Securities and RBC Capital Markets have been appointed as underwriters for the offering.
The IPO is expected to be launched by early next year, according to Mark Hill, who will serve as CEO of American Barrick Gold. The new company will include Barrick’s Nevada Gold Mines and the Pueblo Viejo mine in the Dominican Republic. As part of the proposed separation, Barrick Mining will retain majority ownership of the new entity following the IPO and receive an annual dividend of $1.2 billion, payable quarterly. The separation follows earlier reports that Barrick was considering restructuring its global operations after former CEO Mark Bristow left the company.
Although the SEC filings did not disclose the proposed market valuation of American Barrick Gold, its balance sheet reported total book equity of $20.8 billion. Barrick Mining, which currently operates across North America, Africa, Latin America and the Asia-Pacific region, has a market capitalisation of approximately $65 billion. The company’s shares closed down 5.61% on the Toronto Stock Exchange on Tuesday following the filing.
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