China Coal kicks off HK IPO
By Lillian Liu (China Daily)Updated: 2006-11-30 09:03
HONG KONG: China Coal Energy Co, the country's leading coal mine operator, started its initial public offering (IPO) in Hong Kong yesterday, hoping to raise up to US$1.7 billion with a price range from HK$3.2 (41 US cents) to HK$4.05 (52 US cents).
China's second-largest coal group by revenue, is selling 3.25 billion shares, hoping to use 65 per cent of the IPO's proceeds to improve capacity and pay off bank loans, the company said in its prospectus.
China Coal Energy is the third mainland coal group to list in Hong Kong after Yanzhou Coal Mining Co and Shenhua Energy Co. Both attracted a great deal of interest from investors eyeing profits from the world's fastest-growing economy.
"Shenhua Energy has had a very good market performance, which surely favours the listing of China Coal Energy," said Louise Wong, director at Phillip Asset Management, a Hong Kong-based securities consulting group.
"The mainland has made great efforts to regulate coal operations in the world's biggest coal consuming country, including the upcoming energy law aiming to improve power supplies. All of this serves to attract energy shareholders," Wong told China Daily.
The mainland IPO fever has not shown any sign of cooling down as a number of H-share issuers queue up to go public after a record year for listings. Investors will continue ride the wave of mainland IPO fever, said Wong.
Hong Kong's stock exchange is busy hosting IPOs from the mainland, including
the Industrial and Commercial Bank of China's historic US$22 billion offering,
and has raised a combined US$33.4 billion from mainland IPOs so far this year,
according to Dealogic, a market-data provider.
| 1 | 2 |  |
(For more biz stories, please visit Industry Updates)
| ||