Swiss iron ore group Ferrexpo has raised around $100 million through a placement of new shares, seeking to strengthen liquidity, preserve jobs and restart operations at its Ukrainian assets after production was suspended due to security concerns and a deterioration in the company’s financial position.
The company announced the results of the placement on September 4 on the London Stock Exchange website. Ferrexpo placed 448.85 million new shares at a price of 16.5 pence per share. The placement price was 42.3% below the 28.6 pence share price recorded on April 30, 2026, the last trading day before the suspension of trading.
The new issuance represents approximately 73.1% of the number of Ferrexpo shares outstanding before the capital raise. As a result, the placement will significantly increase the company’s share count and substantially dilute the holdings of existing shareholders that do not participate in the recapitalization.
The largest participant in the placement will be Ukrainian businessman Andriy Verevskyi, founder and majority owner of agricultural holding Kernel. He will invest $50 million in Ferrexpo and, upon completion of the transaction, will receive 224.42 million new shares, equivalent to approximately 21.4% of the company’s post-recapitalization share capital.
Kernel emphasized that the transaction is Verevskyi’s personal investment and not an investment by the agricultural holding itself. It is described as a strategic portfolio investment intended to support Ferrexpo during a period of financial difficulty. Verevskyi’s future plans regarding his ownership stake or potential involvement in Ferrexpo’s operations will depend on market conditions and the company’s recovery process.
A further 179.54 million shares at the placement price will be subscribed for by Ferrexpo’s largest shareholder, Fevamotinico S.a.r.l., which is associated with the group’s former owner, Kostyantyn Zhevago. The remaining shares will be allocated to other investors.
Ferrexpo plans to use the proceeds primarily to stabilize liquidity and restore operations at its Ukrainian assets. Ferrexpo’s interim executive chairman, Lucio Genovese, said the financing would allow the company to strengthen its balance sheet and create the conditions necessary to restart production in Ukraine.
According to him, the funds are also expected to help restore exports to European and other international customers, finance deferred expenditure at the group’s operations and preserve thousands of jobs.
The need for an urgent capital raise emerged amid a sharp deterioration in Ferrexpo’s financial position. On August 5, 2026, the company suspended production in Ukraine due to security risks and warned that its available cash could last only until mid-September.
As of June 30, 2026, Ferrexpo’s net cash position, excluding lease liabilities, stood at approximately $21 million. By comparison, the figure was $25 million at the end of March and $47 million at the end of 2025. This means the company’s available net cash position more than halved during the first six months of the year compared with the end of 2025.
Additional pressure on liquidity came from Russian attacks on Ukrainian port infrastructure used by Ferrexpo to export its products. Of the four vessels the group planned to use for shipments, three remain blocked in ports. Another vessel carrying Ferrexpo cargo worth approximately $5–6 million was damaged by a Russian drone.
Security, energy supply and export logistics challenges have already led to a significant decline in the group’s production. In 2025, Ferrexpo produced 3.22 million tonnes of iron ore pellets, 47% less than a year earlier. Total commercial production fell by 9% to 6.1 million tonnes.
Ferrexpo is a Swiss iron ore group whose main production assets are located in Ukraine. The company’s key asset remains the Poltava Mining and Processing Plant. Ferrexpo also owns 100% of the Yeristovo Mining and Processing Plant and 99.9% of the Belanovo Mining and Processing Plant.
The new share placement remains subject to shareholder approval at a general meeting scheduled for September 21. The new shares are expected to begin trading on the London Stock Exchange on September 22.
At the same time, the company expects trading in Ferrexpo’s existing shares, suspended since May 1, to resume as early as September 7. The resumption of trading is expected following completion of the audit and publication of the annual report.
