Ferrexpo Surges 29% as $100M Equity Raise Restarts Ukraine Ore

Ferrexpo shares surged 29% to 36.88 pence in early London trading on Monday after the iron ore producer raised $100 million in an equity placement, clearing the path to resume production in Ukraine and restart trading on the London Stock Exchange.

The capital injection provides financial relief for the mining company, which had faced operational halts and suspended share trading amid wartime disruptions in Ukraine. The fresh funding package was anchored by major stakeholders, including agricultural holding owner Andriy Verevsky and entities linked to Kostiantyn Zhevago, according to an Interfax Ukraine report.

"Today's announcement also enables the resumption of trading of the Group's shares on the London Stock Exchange. Our London listing (...) since 2007 remains an important part of our ongoing commitment to high standards of corporate governance, transparency, and accountability, while providing investors with the protection and confidence expected of a global public company," said Ferrexpo interim CEO Lucio Genovese in a stock exchange statement on Friday.

Details of the $100 Million Capital Raise

Under the recapitalization terms, Ferrexpo issued new shares at 16.5 pence each. That placement price represents a 42.3% discount compared to the stock's last traded price on the London Stock Exchange on April 30 before trading was suspended.

Half of the total $100 million raise was contributed by Andriy Verevsky, owner of the Kernel agricultural holding. Approximately 40% of the funding was provided by Fevamotinico S.a.r.l., an investment vehicle associated with Kostiantyn Zhevago.

Operational Restart at Ukrainian Mines

Following the financial close, Ferrexpo brought its Ukrainian mining operations back online over the weekend, initially bringing one pellet line into active production.

"We are pleased to restart production in Ukraine and I would like to thank our workforce, who have once again demonstrated their commitment and determination in being able to bring the operation back online over the weekend," said interim executive chair Lucio Genovese, as reported by Proactive Investors.

What the LSE Return Means for Investors

The return to public trading on the London Stock Exchange marks a crucial milestone for the London-listed pellet producer, which exports high-grade iron ore pellets to global steelmakers. The recapitalization structure dilutes existing equity holders significantly via the heavily discounted share issue, but it removes immediate insolvency risks and restores liquidity for shareholders following months of suspension.