New mining investment firm Vallar Plc unveiled plans on Friday to list on the London Stock Exchange and raise 600 million pounds ($898.2 million) to take advantage of acquisition opportunities in the sector, according to Reuters. The firm, led by finance and mining veterans Nathaniel Rothschild and James Campbell, plans to start with one major acquisition and eventually build up a mid-tier mining house. "Vallar intends to acquire a single major company, business or asset that has significant operations in the global metals, mining and resources sector," a statement said. Acquisition companies are a straightforward cash shell until they acquire a target, at which point the money raised in the initial public offer (IPO) will be complemented by debt, and possibly further equity. The value of the initial acquisition was expected to be 2 billion to 5 billion pounds, financed with debt and by issuing additional shares, a source close to the situation said. "After a number of years of consolidation, the mining industry is entering a phase of streamlining and we think many attractive targets will become available," said Campbell, who has 35 years of experience in the sector, including positions with diamond group De Beers and units of mining firm Anglo American. Rothschild is the former co-chairman of hedge fund Atticus Capital LP and chairman of the international advisory board of Russian aluminium group UC Rusal. Vallar shares would be priced at 10 pounds each and closing of the order book is due on July 8. A source familiar with the matter said that there was already a strong order book in place. Vallar is the second acquisition vehicle to appear on the LSE this year. Entrepreneur Hugh Osmond raised 417.7 million pounds via the IPO of Horizon Acquisition in February. That offer, like Vallar, was priced at 10 pounds and was also arranged by Credit Suisse, the sole sponsor on this deal alongside joint-bookrunner JP Morgan Cazenove. Various IPOs have been withdrawn from the market in recent weeks as volatitlity damaged investor confidence, though British oil and gas company Fairfield Energy said it would try to raise as much as $500 million in a London listing in July.
