Commodities

Supporting the growth of a global copper producer

Macquarie Capital acted as joint underwriter on MMG Limited’s (MMG) $US1.16 billion rights issue to support the future growth and development of its mines

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Sector Commodities
Sub-sector Critical minerals
Location Asia

Opportunity

MMG is a global producer of copper and other base metals critical to supporting the energy transition. Listed on the Hong Kong Stock Exchange, MMG is headquartered in Melbourne and Beijing with operations in Australia, Peru, the Democratic Republic of the Congo and Botswana.

Macquarie Capital has a long history of advising MMG, acting as sole underwriter on MMG’s $US512 million rights issue in 2016 and as financial adviser for its $US1.88 billion acquisition of Botswana’s Khoemacau copper mine in early 2024.


Approach

Following the acquisition of the Khoemacau mine, a capital raising was planned to enable MMG to fund the ongoing development of its mines and consolidate its financial position. 

Macquarie Capital assembled a multi-jurisdictional deal team of equity capital markets, corporate finance, and critical minerals and energy specialists. Key shareholders and sector specialist funds across Asia, Australia and Europe were targeted with effective global marketing to communicate MMG’s equity story.

Timing for the transaction was also optimised to launch after a major index inclusion and rebalance of the company’s stocks, which increased the number of potential subscribers and ultimately improved take up of the rights offering.

Outcome

The rights issue was strongly supported by existing and new investors to be 2.8 times subscribed. This included MMG’s major shareholder which fully subscribed for it's allotted 2.34 billion rights shares.

This transaction was the second largest Hong Kong equity offering in 2024, the largest Asia mining equity offering since 2018, and the largest rights issue in the mining sector in the history of the Hong Kong market.1 It supports MMG’s equity position and enables the ongoing development of its copper and base metal mines, playing a key role in supporting the energy transition.

#1

largest mining rights issue in Hong Kong’s history1

#1

largest ECM transaction in Asia’s mining sector since 20181

2.8 times

subscribed rights issue

1. According to Dealogic, as at 31 October 2024

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