Lessons From An Historic Mining IPO

The recently completed initial public offering by Nexa Resources S.A. (formerly, Votorantim Metais) on the Toronto Stock Exchange (the TSX) and the New York Stock Exchange has received considerable attention from capital markets participants and the financial press for its size (US$570 million, including the exercise of the over-allotment option) and for the large and impressive underwriting syndicate. Nexa's IPO was the largest mining IPO on the TSX of a Latin American company, it was Canada's 3^rd largest mining IPO ever and the largest mining IPO in Canada over the last decade! The IPO is also noteworthy for its regulatory achievements, from both technical and securities law perspectives, including managing the regulatory authority and stock exchange approvals for an issuer with a dozen existing material projects (and the related dozen technical reports which had to be summarized in the prospectuses, and reviewed and accepted by the regulators and stock exchanges).