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CHINA / National |
China Coal launches $4.5 billion Shanghai IPO(Agencies)
Updated: 2008-01-21 10:06 SHANGHAI - China Coal Energy Co, the country's second-biggest coal producer, launched on Monday an initial public offer of shares in Shanghai that could raise about $4.5 billion in one of China's 10 biggest IPOs. The company, which obtained regulatory approval for the offer on January 11, said it was starting consultations with investors on the pricing. China Coal plans to issue up to 1.525 billion new A shares, or 11.51 percent of its expanded share capital, to develop two coal projects in Inner Mongolia and Heilongjiang. Based on the HK$23.45 last traded price of its Hong Kong-listed H shares, the company could raise around US$4.5 billion. Chinese firms typically sell IPO shares to domestic investors at a discount to the Hong Kong market price. China Coal said it would accept subscriptions to its offer on Thursday and Friday. Funds frozen by the offer will be returned to unsuccessful applicants on January 29 and 30. A quarter of the shares will be earmarked for institutional investors and the remainder for retail investors, and the ratio may be shifted further in favor of the retail tranche if demand is strong. China Coal said it expected to list in Shanghai on February 1. |
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