PERTH (miningweekly.com) – Coal miner Yancoal has revealed details of its initial public offering (IPO) on the Hong Kong Stock Exchange, with the share prices to fall within HK$23.48 and HK$25.84 a share.
This equated to between A$4.09 and A$4.50 a share, with Yancoal shares closing at A$3.06 on the ASX on November 23.
A final pricing for the IPO will be announced on November 30.
Yancoal told shareholders on Monday that as part of the global offering, the company had entered into a cornerstone investment agreement with Shaanxi Coal and Chemical Industry Group, which had agreed to subscribe for about $40-million in shares.
The global offering is subject to a number of conditions, including an underwriting agreement, and an institutional bookbuild at an offer price that is within the offer price range.
Once all the conditions have been met, Yancoal was also planning a pro-rata accelerated renounceable entitlement offer, under which eligible shareholders would have the opportunity to subscribe for 0.05387 new shares in the company for every one share held.
Yancoal said that the funds raised from both the global offer and the entitlement offer would be used to repay outstanding debts, finance potential future acquisitions, which included an additional 4% interest in the Moolarben joint venture, and to fund working capital.