Navoi Mining & Metallurgical Co., one of the world’s largest gold producers, has picked banks to lead a potential initial public offering in London and Tashkent, Uzbekistan, hoping to capitalize on a recent rally in the price of the precious metal, according to people familiar with the matter.

The Uzbekistan state-backed miner is seeking a valuation of around $20 billion including debt, two of the people said, citing a nearly 30% surge in the price of gold this year and trading multiples of other gold miners. Gold miners including Newmont Corp. and Barrick Mining Corp. have seen their share prices soar this year amid the run-up in gold prices.

NMMC is working with Citigroup Inc., Morgan Stanley and JPMorgan Chase & Co. to arrange a possible offering, said the people, who asked not to be identified as the information is private. Both Citi and JPMorgan have previously helped the company issue debt on the London Stock Exchange. NMMC is working with Rothschild & Co. as an IPO adviser on the possible listing, Bloomberg reported in March.

It’s considering issuing London-listed global depositary receipts as part of a dual listing in the UK and Uzbekistan, the people said. An Uzbek presidential decree issued in April, which mandated public offerings for 12 state-backed companies, requires that shares be listed domestically alongside any international offering.

No final decisions have been made and plans may still change, the people said. Representatives for NMMC, Citi, JPMorgan and Morgan Stanley declined to comment. A Rothschild representative and an Uzbek government spokesperson did not immediately reply to a request for comment.

The price of gold has roughly doubled over the past three years, with central bankers, asset managers and private investors all flocking to bullion as geopolitical risks rise. Prices hit a record above $3,500 an ounce in April, and many analysts are betting that gold will remain well-supported as the impact of President Donald Trump’s trade war reverberates through global markets.

NMMC’s planned IPO is part of the Central Asian nation’s privatization agenda, which was kicked off by the April decree. Under the decree, NMMC should announce bidding terms by the second half of this year for 10% to 15% of the government’s share. It also calls for an IPO of 25% of its $1.7 billion national investment fund, UzNIF. Uzbek officials have been pondering which of the two IPOs to bring to market first, Bloomberg has reported.

For London, the transactions could serve as a shot in the arm, after the British capital suffered its worst first half for IPOs in nearly three decades. It has historically been a popular listing venue for mining and emerging market companies.

NMMC describes itself as the world’s fourth-largest gold miner, making around $4 billion in operating profit last year after producing 3.1 million ounces of gold and $7.4 billion in revenues, according to its annual report.

Source: MINING.COM