Yanzhou may raise over US$1b in IPO
Source: Bloomberg News |
May 25, 2011, Wednesday
|
Print Edition
Print Edition
YANZHOU Coal Mining Co, China's fourth-largest producer, may raise more than A$1 billion (US$1.1 billion) in an initial public offering for at least a third of its Australian unit by the end of the year.
The company is in talks to prepare for the sale with banks and advisers, Ian McAleese, investor relations manager of Brisbane-based Yancoal Australia Ltd, said in an e-mailed response to questions. It has a "strategy to be IPO ready by the end of 2011," he said.
Yanzhou bought Felix Resources Ltd for A$3.1 billion in 2009, China's biggest takeover of an Australian company. An IPO of these assets may be Australia's biggest since the sale of coal transport company QR National Ltd raised A$3.97 billion in October last year.
"If things were to remain as they are now, then you'd expect a coal float of a mid-tier miner to be reasonably well supported," Ben Potter, a market analyst at IG Markets in Melbourne, said by phone.
Coal demand is increasing in China and India as the countries look to fuel economies that are outpacing the rest of the world. China's purchases may rise 7.8 percent in 2011, while India's may climb 28 percent, Societe Generale SA said in March.
"We would like to have our prospectus ready to be able to take advantage of market conditions," McAleese said.
Japan, the world's biggest coal importer, may use as much as 1 million extra tons this year as the country turns to coal-fired plants to make up for nuclear power capacity lost after the March earthquake, according to Deutsche Bank AG. Yancoal produces types of coal used by both steel mills and power stations.
Share sales on the Australian stock exchange so far this year have raised a total of A$344 million, down 40 percent on the same period last year, according to data compiled by Bloomberg News.
Australia's foreign takeover regulator, the Foreign Investment Review Board, ruled at the time of the Felix acquisition that Shandong-based Yanzhou must list a minimum of 30 percent of its Australian assets by the end of 2012.
The company is in talks to prepare for the sale with banks and advisers, Ian McAleese, investor relations manager of Brisbane-based Yancoal Australia Ltd, said in an e-mailed response to questions. It has a "strategy to be IPO ready by the end of 2011," he said.
Yanzhou bought Felix Resources Ltd for A$3.1 billion in 2009, China's biggest takeover of an Australian company. An IPO of these assets may be Australia's biggest since the sale of coal transport company QR National Ltd raised A$3.97 billion in October last year.
"If things were to remain as they are now, then you'd expect a coal float of a mid-tier miner to be reasonably well supported," Ben Potter, a market analyst at IG Markets in Melbourne, said by phone.
Coal demand is increasing in China and India as the countries look to fuel economies that are outpacing the rest of the world. China's purchases may rise 7.8 percent in 2011, while India's may climb 28 percent, Societe Generale SA said in March.
"We would like to have our prospectus ready to be able to take advantage of market conditions," McAleese said.
Japan, the world's biggest coal importer, may use as much as 1 million extra tons this year as the country turns to coal-fired plants to make up for nuclear power capacity lost after the March earthquake, according to Deutsche Bank AG. Yancoal produces types of coal used by both steel mills and power stations.
Share sales on the Australian stock exchange so far this year have raised a total of A$344 million, down 40 percent on the same period last year, according to data compiled by Bloomberg News.
Australia's foreign takeover regulator, the Foreign Investment Review Board, ruled at the time of the Felix acquisition that Shandong-based Yanzhou must list a minimum of 30 percent of its Australian assets by the end of 2012.
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