Mongolia coal is on fire
"..........................................Mongolia coal is on fire
Mongolian coal is so hot as an investment, it could be the IPO of the year.
A massive Mongolian state-owned coal company, Erdenes Tavan Tolgoi, is in talks to go public.
According to the Wall Street Journal, it’s the world’s largest coking coal deposit. The initial public offering would value the company at between $10 and $15 billion.
Bankers are fighting over the deal.
The plan is to sell 30 percent to international investors, 10 percent to professional Mongolian investors, and 10 percent to Mongolian citizens.
The Financial Times is calling this the biggest IPO in Asia this year...
The Mongolian government is struggling to cope with the number of pitches it has received or even understand the financial intricacies of the proposals — leaving the playing field wide open.
Some suggest that Morgan Stanley may have an edge because the son of Sukhbaatar Batbold, Mongolia’s prime minister, works for the company (as an analyst in Chicago). Then there is the fact that John Mack, Morgan Stanley chairman, visited Ulan Bator last Autumn and met Batbold.
The Tavan Tolgoi deposit in the south Gobi desert, 270 kilometres (165 miles) from the border with China, contains 6.4 billion tonnes of coal, making it one of the largest coal fields in the world.
Alexander Molyneux, chairman of SouthGobi Energy Resources, a unit of Ivanhoe, said last September that 39 percent of China's coal imports were expected to come from Mongolia in 2010, up from just 11 percent in 2009.
A year ago, no one was talking about Mongolia...
Now, all of the global players are fighting over it."
Mongolian coal is so hot as an investment, it could be the IPO of the year.
A massive Mongolian state-owned coal company, Erdenes Tavan Tolgoi, is in talks to go public.
According to the Wall Street Journal, it’s the world’s largest coking coal deposit. The initial public offering would value the company at between $10 and $15 billion.
Bankers are fighting over the deal.
The plan is to sell 30 percent to international investors, 10 percent to professional Mongolian investors, and 10 percent to Mongolian citizens.
The Financial Times is calling this the biggest IPO in Asia this year...
The Mongolian government is struggling to cope with the number of pitches it has received or even understand the financial intricacies of the proposals — leaving the playing field wide open.
Some suggest that Morgan Stanley may have an edge because the son of Sukhbaatar Batbold, Mongolia’s prime minister, works for the company (as an analyst in Chicago). Then there is the fact that John Mack, Morgan Stanley chairman, visited Ulan Bator last Autumn and met Batbold.
The Tavan Tolgoi deposit in the south Gobi desert, 270 kilometres (165 miles) from the border with China, contains 6.4 billion tonnes of coal, making it one of the largest coal fields in the world.
Alexander Molyneux, chairman of SouthGobi Energy Resources, a unit of Ivanhoe, said last September that 39 percent of China's coal imports were expected to come from Mongolia in 2010, up from just 11 percent in 2009.
A year ago, no one was talking about Mongolia...
Now, all of the global players are fighting over it."
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