MANILA, Philippines - Coal Asia Holdings, which holds the country’s second-largest coal reserves, said its initial public offering (IPO) will list 800 million shares on the Philippine Stock Exchange's (PSE) first board by the fourth quarter of 2012.
In a statement, Coal Asia chairman Harald Tomintz said the IPO will be priced at par value, allowing investors to buy shares at the same price as the company's incorporators.
"The company continues to draw interest from potential strategic and financial investors from the power generation and cement industries as well as investment funds with the objective of owning a stake in Coal Asia as a means to ensure continuous supply of coal and possibly hedge against another potential significant run-up in coal prices," the company said.
Net proceeds from the IPO, estimated at P726.87 million, will be used to bring its Davao Oriental mine into production by 2014 and its Zamboanga Sibugay mine by 2015.
Of the amount, P100 million will be spent for the completion of the exploration and feasibility study of the Davao Oriental mine, and P400 million for the development of the Davao mine. The remaining balance will be used for the continued exploration at the Zamboanga Sibugay mine and for working capital requirements.
Coal Asia is the parent company of Titan Mining and Energy Corp. (TMEC), which owns the mine exploration and development rights in Davao Oriental and Zamboanga Sibugay. The company's coal assets are estimated to be worth P12.5 billion based on an independent valuation report by the Multinational Investment Bancorporation.
The company's mine developments are on-track with commercial production of 600,000 metric tons of high grade coal per year scheduled for 2014.
source: abs-cbnnews.com
