Ferrexpo (LSE:FXPO) has raised $100 million of new equity to fund the restart of production at its iron ore operations in Ukraine.
The London-listed producer and exporter of premium iron ore products issued 448.85 million new shares in total, split between a placing of 269.31 million shares and a subscription of 179.54 million shares, both at 16.5p.
That price marks a discount of approximately 42.3% to the 28.6p closing level on 30 April, the last trading day before the shares were suspended on 1 May.
The new shares represent approximately 73.1% of Ferrexpo's existing issued share capital, a significant dilution for existing holders.
Andriy Verevskyi provided a $50 million cornerstone commitment as part of the placing, which was oversubscribed, and will emerge holding 224.42 million new shares.
Fevamotinico, Ferrexpo's largest shareholder, meanwhile, subscribed for 179.54 million shares and has undertaken to vote its 49.27% stake in favour of the resolutions at the general meeting.
Interim Executive Chair Lucio Genovese said the proceeds "will provide the Group with the strengthened balance sheet to restart production at our operations in Ukraine" and would "help secure thousands of jobs that are central to Ferrexpo, our local communities and the wider Ukrainian economy."
The company's shares are expected to resume trading on the London Stock Exchange on 7 September, following completion of the audit and publication of annual accounts. The fundraise remains conditional on shareholder approval at a general meeting set for 21 September.
News Intelligence what this means for the company
Ferrexpo has closed a $100 million equity raise at 16.5p per share—a 42.3% discount to its last close—to fund the restart of its suspended Ukraine iron ore operations. The raise dilutes existing shareholders by 73.1% but addresses an acute cash crisis: the company's net accessible cash was expected to last only until mid-September without funding, making this capital injection essential to resume production and preserve operations in a war-constrained environment.
The fundraise materially weakens existing shareholders' ownership and per-share economics, but it removes the immediate solvency risk that threatened the business. Restart execution in Ukraine—where logistics and security remain war-dependent—is now the critical variable; capital alone does not guarantee production recovery.
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