Gemfields’ sparkle set to return to London market

RUBY and emerald miner Gemfields intends to list on the London market again, three years after an acrimonious takeover saga that saw it taken private by a South African fund.

The company, which owns the Faberge jewellery brand and once counted actress Mila Kunis as a “brand ambassador”, is seeking a secondary listing on London’s junior market Aim in an attempt to access greater liquidity and more global investors.

In 2017, the Johannesburg-listed private equity firm Pallinghurst took Gemfields private in a hostile takeover bid that came under fire for undervaluing the company.

Now Gemfields is poised to return to the London market after receiving a muted response on the South African stock exchange.

The company has complained about “lack of broker research and share trading liquidity” in South Africa, where it is currently listed.

It also said it was acting on feedback from shareholders.

Gemfields, run by Sean Gilbertson, is not seeking to raise capital as part of its listing on Alternative Investment

Market (Aim). The gemstones supplier produces about 20pc of the world’s emeralds and 50pc of the world’s rubies from two mines in Mozambique and Zambia.

In an attempt to improve corporate governance, Gemfields replaced its chairman, the mining veteran Brian Gilbertson, in November. Brian Gilbertson is the father of the company’s chief executive.

Last year was the first year that Gemfields surpassed £200m in revenues from the auctions of its stones.

The company has said that the demand for rough rubies and emeralds is increasing, and the appetite from consumers is also growing.

An industry analyst, who declined to be named, said: “They needed to come back to London because South African investors couldn’t give two hoots about the company.”

At its height, Gemfields had a market value of as much as $500m (£383m). When it returns to the market, it is expected to be worth a fraction of that.