Abenójar Tungsten Raises 170 Million Euros in London Stock Exchange Debut

✦ Meridian Analysis

Abenójar Tungsten has moved from a pricing window to a signed equity placement, pricing its London Stock Exchange debut at 110 pence per share – the low end of the range set a week earlier. The deal will see 137 million new shares issued, generating roughly €170 million (about £142.5 million) of gross proceeds. The capital will be earmarked for the construction of the El Moto mine in Ciudad Real, which will extract tungsten and gold, while roughly one‑fifth of the funding – €45 million – comes from Spanish investors and another €6 million from UK retail demand. Existing shareholders, led by the García San Miguel family, will retain control, with new investors taking about 22 % of the post‑issue equity. The transaction is an IPO, the mechanics of which centre on a primary share issuance to fund a greenfield mining project, with the issuer acting as the sole seller and the market providing the capital. Meridian reported earlier this month that the same IPO had been floated at a valuation of up to €730 million. Going forward, deal professionals will watch for the exact allocation of the €170 million between construction, working capital and potential debt reduction, as these details were not disclosed. Information on the underwriting banks, legal advisers and any concurrent financing arrangements, as well as the timeline for the El Moto mine’s first production, will be critical to assess the full financial profile of the transaction.

The Meridian Weekly