Bloomberg News

Tony Hayward’s Vallares Increases IPO Size to $1.9 Billion

June 16, 2011

(Updates with no comment from company in fifth paragraph.)

June 16 (Bloomberg) -- Vallares Plc raised the size of its initial public offering to “at least” 1.2 billion pounds ($1.9 billion) from 1 billion pounds, according to terms of the offer obtained by Bloomberg News.

Backed by former BP Plc Chief Executive Officer Tony Hayward, financier Nathaniel Rothschild and Goldman Sachs Group Inc. banker Julian Metherell, the investment vehicle will seek to buy a company or asset with an enterprise value of 3 billion to 8 billion pounds within two years, Hayward said last week. The shares, priced at 10 pounds each, are set to start trading in London tomorrow, the terms say.

“If you believe that the trend is up for commodities, there are plenty of opportunities and Hayward surely knows about them,” said Christine Tiscareno, an equity analyst at Standard & Poor’s in London. “They will provide a stepping stone for an already successful exploration company to get into the market.”

While Vallares is looking to raise more cash than first estimated, the share sale comes after Glencore International Plc, the world’s largest listed commodities trader, fell by more than 12 percent since its May 19 IPO. Vallares will stop taking orders for shares today, four days earlier than originally scheduled.

Edward Simpkins, a spokesman for Vallares, declined to comment.

Modeled on Rothschild’s Vallar Plc, which raised 707.2 million pounds in a July IPO to buy mining and commodity assets, Vallares will be listed on the London Stock Exchange.

“It’s no surprise there is better-than-expected demand for this fund,” said Gianna Bern, president of Chicago-based Brookshire Advisory and Research Inc. “Small-cap energy issuers will have a viable alternative to spur growth in emerging markets.”

--With assistance from Eduard Gismatullin in London. Editors: Stephen Cunningham, Randall Hackley.

To contact the reporters on this story: Zijing Wu in London at Brian Swint in London at

To contact the editor responsible for this story: Will Kennedy at

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