PERTH (miningweekly.com) – Coal miner Yancoal has applied for dual listing on the Hong Kong Stock Exchange to increase share liquidity and to diversify its investor base.
Yancoal on Monday said that it would maintain its listing on the ASX flowing the Hong Kong Listing, with shares to be traded on both bourses.
The dual listing will be done in conjunction with a proposed capital raising, the details of which will be finalised in due time. Yancoal noted that existing shareholders would have the opportunity to participate in the proposed capital rasing on a pro-rata basis.
“Having established Yancoal as Australia’s largest pure-play coal producer and a major contributor of high quality thermal and semi-soft coal into global markets, we are now taking the next step in our evolution with the listing in Hong Kong,” said chairperson Baocai Zhang.
The noted that the Hong Kong Stock Exchange was one of the leading global stock markets with impressive access to a diversified and stable investor base from both local and overseas investment communities.
CEO Reinhold Schmidt said that the dual listing and proposed capital raise would allow the business to further enhance its capital structure and built upon the successful completion of its Coal & Allied acquisition in 2017.
“Supported by the consistently strong production and financial performance of our three tier-one high quality, low costs assets, Yancoal is a proven leader within the local resource sector with a long-term vision for continued investment into Australia.”
The dual listing was subject to a final board decision, as well as approval from the HKEX, and suitable market conditions.
In addition to the dual listing, Yancoal was also proposing a share consolidation on the basis of 35 existing fully paid shares into one fully paid ordinary share.
The company said that the consolidation would create a more appropriate share capital structure for a company with Yancoal’s market captialisation, with the expected benefit of reduced volatility in the share price.
The share consolidation will require shareholder approval.