Sell-down knocks Ferrexpo share price

Oct (HKSE: 3366-OL.HK - news) 28 (IFR) - BXR Group and Zdenek Bakala sold 63m shares in iron ore pellet producer Ferrexpo (Other OTC: FEEXF - news) on Thursday night after reducing the number they intended to sell by 10%.

The deep discount needed to get the deal away fed through to the following day's trading performance, setting the share price up for the biggest one-day fall this year.

Sole bookrunner JP Morgan came to the market at 5pm with 70m shares, or 11.9% of the share capital.

By the time the deal was priced at 110p per share, the size had been scaled back to 63m shares, or 10.7%. The pricing represents a discount of 13.89% to the closing price of 127.75p.

The selling shareholders have agreed to a 90-day lock-up agreement in relation to a remaining stake of around 13.25%.

The shares closed at 104p on Friday, down 18.59%. (This story will appear in the October 29 issue of IFR Magazine; Reporting by Graham Fahy)