Vallar cheered by £707m IPO response

Investment vehicle Vallar, led by finance and mining veterans Nathaniel Rothschild and James Campbell, unveiled its plans on June 25 to raise 600m to take advantage of acquisition opportunities in the mining sector.

"We are delighted to have received such a positive response from global investors in these difficult markets," said Rothschild in a statement.

"These challenged markets present us with attractive acquisition opportunities and we are confident that we can acquire a major mining business at a valuation that will generate significant shareholder value and provide a platform for the future growth of Vallar."

Vallar has issued 68.7 million shares at 10 each while Rothschild, Campbell and other members of the management team contributed 100m of their money to the deal. Of this 20m was invested in founder's shares that were not part of the offer, the company said.

A source close to the transaction said the financial commitment of the founders, as well as the prominence in the mining industry of Rothschild and Campbell had provided a significant driver of demand during the bookbuild.

The sale's success, though driven in large part by conditions specific to the mining sector and Vallar's management, may lift the European IPO market.