Rio Tinto is pursuing a dual listing for its Iron Ore Co. of Canada Inc. stake in New York and Toronto in the first half of 2019, Reuters reported Dec. 25, citing people familiar with the situation.
The mining major is targeting a valuation of some US$4 billion in the IPO, the sources added, noting that the plans depend on market conditions improving.
Rio Tinto, which owns 59% of Iron Ore Co. of Canada, deems the stake noncore for its iron ore business. Japan's Mitsubishi Corp. owns a 26% interest and Labrador Iron Ore Royalty Corp. holds the remaining 15% interest in the company.
Iron Ore Co. of Canada operates the IOC iron ore mining operation in Labrador.
The mining major tapped Royal Bank of Canada, Credit Suisse and JPMorgan Chase to lead the IPO, the sources added.
While the company had previously failed to sell its Iron Ore Co. of Canada stake for between US$3.5 billion and US$4 billion in 2012, the option is not off the table, the sources said.
Sky News reported in August that Rio Tinto hired investment bank Credit Suisse for the sale of its US$6 billion stake in Iron Ore Co. of Canada. Royal Bank of Canada was said to be advising the company on the float of its about 59% stake in the iron ore producer on the Toronto Stock Exchange.
A Rio Tinto spokesperson declined to comment, Reuters added.