China Coal Energy Co, the nation's second-largest coal producer
by sales, won approval from the Chinese regulator to raise funds in
Shanghai for mine expansion.
China Coal said its plan to sell as many as 1.53 billion
yuan-denominated A shares was approved by the China Securities
Regulatory Commission on Saturday, according to a statement to the
Hong Kong stock exchange yesterday. The sale represented 11.51
percent of its total shares, it said.
The coal producer will use the proceeds to expand mines and
develop chemicals projects to meet rising demand in the country.
China burns coal to generate about 78 percent of its electricity,
Bloomberg News said.
Price range of shares offered will be determined after market
consultation from today to Wednesday while the final price is
expected to be announced on January 29, according to an updated
A-share prospectus. Shares will start trading in Shanghai on
February 1.
China Coal has surged fivefold in the past year in Hong Kong,
making it the third-best performer in the 48-member MSCI Asia
Pacific Energy Index. The stock jumped 5.2 percent to HK$23.45
(US$3) last Friday.
The company plans to spend 21.2 billion yuan (US$2.9 billion) on
two coal and chemicals projects in the Inner Mongolia Autonomous
Region and Heilongjiang Province, it said on January 7.
China Coal's profit for 2007 was no less than 6.01 billion yuan
under international accounting standards, it said. That's 90
percent more than the 3.17 billion yuan a year earlier.
(Shanghai Daily January 21, 2008)
