Barrick sets IPO price for African spinoff

Barrick Gold Corp, the world’s biggest gold miner, said it will sell shares in its African Barrick Gold spinoff for 5.75 British pounds ($8.70 US) each.

The initial public offering is expected to bring in approximately $834 million US, which will be paid to Barrick.

ABG is selling roughly 101 million ordinary shares in the offering representing 25% of its equity. Parent company Barrick will retain the remaining 75% stake in the new company.

The miner created the African subsidiary to trade on the London Stock Exchange.

"As an Africa-focused public company, we believe that African Barrick Gold will be better positioned to generate shareholder value from its operating platform, value which Barrick will continue to benefit from as a majority shareholder," Aaron Regent, Barrick's president and chief executive, said in a statement Friday.

Based on the offer price above, the market capitalization of ABG will be $3.55 billion US. The IPO is slated to close by March 24.