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The Koidu diamond mine in Sierra Leone will be set for an initial public offering on the Hong Kong Stock Exchange, according to published reports.
The Beny Steinmetz Group, a privately held natural resources company, will issue its float in the later half of 2012 through a spinoff company called Octea, which serves as the holding company for the mine, according to the Financial Times. It will attempt to raise $400 million to $600 million and achieve a valuation of $2 billion to $3 billion.
Geneva-based BSG reportedly says the mine is expected to produce 500,000 carats this year and buyers of the its diamonds include Tiffany & Co.
It’s the latest attempt to take advantage of rising diamond demand in Asia along with dwindling supply. The Oppenheimer family, which owned a major stake in De Beers, sold out to its partner Anglo America for $5.1 billion. Russian diamond mining giant Alrosa is also reportedly attempting a listing. Other investment vehicles are being developed by luxury retailer Harry Winston, which has a 40-percent stake in the Diavik Diamond Mine in the Northwest Territories of Canada, and diamond dealer Martin Rapaport, who is known for his Rap Diamond Price List.
http://www.forbes.com/sites/anthonydemarco/2012/01/23/sierra-leone-diamond-mine-set-for-ipo/
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