China Securities Regulatory Commission approved the A-share
initial public offering (IPO) application of China Coal Energy Ltd.
(HK:1898), the country's second largest coal manufacturer, on
Friday.
It marks the return of another coal giant returning to the
mainland market after China Shenhua, the country's largest coal
producer, made a strong debut on the Shanghai Stock Exchange in
early October 2007, netting 66.58 billion yuan (9.16 billion U.S.
dollars) through its IPO.
According to the prospectus released on Jan. 7 by China Coal
Energy, the company plans to issue no more than 1.525 billion A
shares on the Shanghai Stock Exchange, representing 11.51 percent
of the company's capitalization after the IPO.
The proceeds raised would be used for construction of major coal
projects in northern Inner Mongolia Autonomous Region and
northeastern Heilongjiang Province, and supplementing the company's
operating capital.
China Coal Energy was exclusively initiated by China National
Coal Group Corp. in August 2006 and was listed on the Hong Kong
Stock Exchange in December 2006.
China Coal Energy's assets were valued at 55.29 billion yuan
with net assets of 31.88 billion yuan by the end of June 2007. The
operating turnover reached 16.93 billion yuan and net profits hit
2.44 billion yuan in the first half of 2007.
(Xinhua News Agency January 12, 2008)
