A former investment banker is leading the flotation of a new company that plans to buy up and store huge quantities of uranium in anticipation of a jump in its value.
Peter Bacchus, previously of Jefferies and Morgan Stanley, is masterminding the initial public offering of Yellow Cake, which is seeking to raise between $160m (£120m) and $200m that it will use to buy 8.1m pounds of the radioactive metal, used in nuclear reactors.
It is understood that Yellow Cake – so named for the yellowy tint of powdered uranium – has struck a supply deal with Kazatomprom, the world’s largest producer of uranium, to buy around $170m worth of the metal at a 7pc discount to the current spot price of around $22...