Ferrexpo raises $100m in share placement led by Kernel's Verevsky
Swiss-registered iron ore group Ferrexpo placed 448,848,484 new shares at 16.5 pence each on 4 September, raising roughly $100 million. Kernel owner Andriy Verevsky contributed $50 million for a 21.4% stake, while existing largest shareholder Fevamotinico subscribed for additional shares. The funds are intended to restart Poltava and Yeristivsky mining and processing plants, which suspended production on 5 August due to security risks and port blockages.
Key points
- Ferrexpo placed 448,848,484 new shares at 16.5 pence each on 4 September, raising about $100 million.
- The placement price was 42.3% below the 28.6 pence share price on 30 April 2026, the last trading day before trading was suspended.
- New shares equal roughly 73.1% of Ferrexpo's pre-placement share count.
- Andriy Verevsky contributed $50 million and will receive 224,424,242 shares, giving him a 21.4% stake.
- Fevamotinico, linked to Kostyantyn Zhevago and previously holding 49.27%, subscribed for 179,539,393 shares; its stake falls to about 45.3%.
- Production at Poltava and Yeristivsky GZKs was suspended on 5 August due to security risks; net cash excluding leases fell to about $17.8 million by 28 August.
- The placement requires shareholder approval at a general meeting on 21 September; new shares are expected to begin trading on the London Stock Exchange on 22 September.
Why it matters
Ferrexpo is one of Ukraine's largest iron ore producers and a key supplier to European steelmakers, so its ability to keep operating has implications for Ukrainian jobs, regional economies and global steel supply. Verevsky's $50 million investment makes him a 21.4% shareholder, creating a rare large cross-investment between two of Ukraine's biggest industrial groups. The recapitalisation comes after an August production halt triggered by security risks and port blockages, underlining how the war is reshaping the ownership and viability of strategic Ukrainian assets.
What happened
On 4 September, Ferrexpo carried out an accelerated bookbuild placement of 448,848,484 new shares at 16.5 pence each, raising about $100 million. The price was 42.3% below the 28.6 pence quotation on 30 April 2026, the last trading day before shares were suspended on 1 May. Andriy Verevsky committed $50 million and will receive 224,424,242 shares, lifting his stake from 0% to 21.4%. Fevamotinico, the largest pre-placement shareholder at 49.27% and linked to Kostyantyn Zhevago, subscribed for 179,539,393 new shares, with its stake dropping to about 45.3%. Other shareholders' combined stake falls from 50.7% to 33.3%. Panmure Liberum Limited and Peel Hunt LLP acted as joint global coordinators and bookrunners. The placement still requires shareholder approval at a general meeting on 21 September; trading of new shares on the London Stock Exchange is expected to begin on 22 September, and trading in existing shares is expected to resume on 7 September after completion of the audit and publication of the annual report. Ferrexpo's interim CEO Lucio Genovese said the financing would strengthen the group's balance sheet and allow it to resume production at its Ukrainian enterprises and exports to European and international clients. The company's board considers the $100 million sufficient for immediate and short-term operational needs, allowing reduced activity for the next 18 months.
How Ukrainian sources describe it
Ukrainian outlets frame the deal in business-strategic terms, foregrounding Verevsky's role and the planned restart of Poltava and Yeristivsky GZKs in the Poltava region. They highlight the dilution of the long-standing controlling shareholder Fevamotinico and Verevsky's arrival as a 21.4% shareholder, treating it as a shift in the ownership map of a strategically important Ukrainian producer. They also emphasise the consequences of the war as the immediate trigger for the fundraising: the 5 August production halt, port blockages and the Russian drone strike on a cargo vessel.
Where reporting differs
Article 3470 reports Verevsky's contribution as $50 million without specifying Fevamotinico's share, while articles 4064 and 3902 describe his contribution as 'about $50 million' and Fevamotinico's as 'about $40 million', leaving roughly $10 million of the $100 million placement unaccounted for in the supplied sources.
Background
Ferrexpo is a Swiss-registered iron ore group whose main assets — Poltava GZK (100%), Yeristivsky GZK (100%) and Bilanivsky GZK (99.9%) — are in Ukraine. The company suspended Ukrainian production on 5 August citing security risks, and at the time said available cash would only last until mid-September. Net cash excluding lease obligations fell from $47 million at end-2025 to about $21 million on 30 June 2026, and roughly $17.8 million by 28 August 2026. Three of four export vessels Ferrexpo planned to use remain blocked in ports, and one cargo worth $5–6 million was damaged by a Russian drone. Fevamotinico, the largest pre-placement shareholder at 49.27% and linked to Kostyantyn Zhevago, conditioned its participation on its stake not falling below 45.2% and on no third party other than Verevsky ending up above 15% after the recapitalisation. Kostyantyn Zhevago is under Ukrainian sanctions and faces bankruptcy proceedings related to Poltava GZK.