MOSCOW -- Polyus PJSC, Russia's largest gold producer, announced a return Monday to the London Stock Exchange following a two-year hiatus.
The company said the offering would comprise at least 7% of its issued share capital. Polyus has a market capitalization of $9.9 billion on the Moscow Exchange.
The company delisted in 2015 to ensure its eligibility to bid for the Sukhoi Log deposit, one of the world's largest undeveloped gold deposits. The Russian government awarded the license to a joint venture established between Polyus and holding company Rostec earlier this year.
The share offering that comes as Russia emerges from a two-year recession. The country's economy has been battered by Western sanctions over its annexation of the Black Sea peninsula of Crimea from Ukraine in 2014 and plummeting global prices for crude oil, the country's main export. The World Bank is projecting a moderate return to GDP growth this year, forecasting a growth rate of between 1.3% and 1.4% for the 2017-to-2019 period.
Analysts and company officials say investors may now be warming to Russia amid a nascent economic recovery.
"The economic backdrop has improved tremendously over the last 12 months, " said James Friel, Global Head of Investment Banking at Renaissance Capital. "Russia is seen as less toxic now."
Earlier this year, PAO Detsky Mir, the country's largest children's retailer, raised $355 million in the first major initial public offering since the onset of the Ukraine crisis. Participants in last week's St. Petersburg International Economic Forum said they were also considering offerings on foreign exchanges.
Polyus has already raised money through Eurobond placements in October and February, transactions worth $500 million and $800 million, respectively. More recently, the company agreed to sell 10% of its shares to a consortium led by China's Fosun International Limited, a deal that included an option for an additional 5% stake.
In a recent update, the company said its proved and probable ore reserves equate to 71 million ounces of gold.
Write to Nathan Hodge at nathan.hodge@wsj.com