Kazatomprom, the world’s largest producer of uranium, is planning a listing in London later this year or early next year.
The company’s chief executive Galymzhan Pirmatov cited a recent rise in uranium prices coupled with a bullish outlook for the long-term price as reasons underlying the decision.
Pirmatov argued that supply and demand fundamentals are “strong” and said that the industry is now at an inflection point.
At this stage, the plan is for a 25% stake in Kazatomprom to be floated on London, with the remaining 75% stake to be retained by the Kazakh sovereign wealth fund Samruk-Kazyna.
London listing likely to find support
The company currently accounts for around 20% of world production and its influence has grown in recent years since the announcement of production curbs at its Kazakh projects often corresponds with an uptick in the spot price.
The success of another recent listing, Yellow Cake PLC (YCA), which debuted earlier this year suggests that a London listing will find support.
Yellow Cake is a straightforward uranium investment vehicle rather than a miner, and derives its value simply from an investment in physical product, the supply of which is guaranteed in a lock-in deal with Kazatomprom.