(Reuters) – Anglo-Australian miner Rio Tinto (RIO.L) (RIO.AX) is preparing to take its Iron Ore Company of Canada business public in the first half of 2019 by dual-listing it in New York and Toronto, people familiar with the situation told Reuters.
The company has hired investment banks Royal Bank of Canada (RY.TO), Credit Suisse (CSGN.S) and JPMorgan Chase (JPM.N) to lead the IPO, according to sources who spoke on condition of anonymity as the information is not public.
Rio Tinto, the world’s second-biggest listed miner, is targeting a valuation of about $4 billion, they said. While Rio did not see much traction with a sale process, it has not ruled that out, the people said.
The IPO plans would depend on market conditions improving, the people added. With high levels of volatility, global markets have fallen because of concerns about geopolitical risks and economic growth.
A spokesman for Rio declined to comment. With operations in Labrador and Newfoundland, Iron Ore Company of Canada is a major producer of iron ore in the country.