Spain's Abenojar Tungsten launches biggest London mining IPO since 2018 (updated)
UPDATE 1-Spain's Abenojar Tungsten launches biggest London mining IPO since 2018 Adds CEO comments
LONDON, Oct 30 (Reuters) - Shares in Spanish miner Abenojar Tungsten ABTA.L rose on their London debut on Friday after the city's biggest mining flotation by funds raised since 2018.
CEO Gonzalo Garcia San Miguel told Reuters that London was the natural choice for the listing because it offered access to specialist mining investors better suited to supporting the company's long-term development plans.
Garcia San Miguel said Abenojar was in the initial phases of work on building a processing plant that will refine tungsten concentrate from its El Moto project. Both the mine and processing facility have been designated strategic projects by the European Union, he said
Tungsten, used in defence systems, aerospace components, industrial cutting tools and electronics, is considered a critical mineral by Western governments seeking to reduce dependence on China, which dominates global production and processing
Unconditional trading in the shares, under the ticker "ABT", began on Friday after conditional trading started when the IPO was priced at 110 pence per share on Tuesday
The shares were up 2% at 104 pence as of 1050 GMT
The company raised €170 million ($190 million) in London's largest mining IPO since Kazakh uranium producer Kazatomprom KZAP.KZ raised £311 million ($417 million) through a listing of Global Depository Receipts in 2018
With a market capitalisation of £522 million, Abenojar is on the cusp of joining the FTSE 250 index .FTMC
Abenojar is developing the El Moto project in Abenójar, Spain, one of the world's largest and highest-grade undeveloped tungsten deposits
Garcia San Miguel said the mine is expected to start producing in early 2029
BMO Capital Markets and Peel Hunt acted as joint sponsors and joint global coordinators, alongside Deutsche Bank, with Canaccord Genuity serving as joint bookrunner
($1 = 0.8930 euros)
($1 = 0.7456 pounds)
(Reporting by Clara Denina, Raechel Thankam Job Editing by Sonia Cheema and Mark Potter)
((RaechelThankam.Job@thomsonreuters.com;))