Mongolia Said to Plan Three City IPO
Mongolia plans to seek between $2 billion and $3 billion in an initial public offering of its Erdenes Tavan Tolgoi mining company next year, and may simultaneously list the shares in London, Hong Kong and Ulaanbaatar, three people with knowledge of the matter said.
The company plans to list in Ulaanbaatar to allow Mongolian investors to participate in the IPO, one of the people said, asking not to be identified because the information is private. BNP Paribas (BNP) SA, Deutsche Bank AG (DBK), Goldman Sachs Group Inc. (GS) and Macquarie Group Ltd. (MQG) will manage the sale, the people said.
Mongolian Mining Corp. (975), the nation’s biggest coking coal exporter, raised HK$5.8 billion ($744 million) in a Hong Kong initial public offering last October. The stock, which has gained 22 percent from its IPO price, closed at HK$8.54 yesterday.
Mongolia’s coal production doubled last year to 25 million metric tons to become the nation’s top export earner, spurring the government to push through development of mines. Tavan Tolgoi spans some 68,000 hectares (168,000 acres), with coking coal used in steelmaking located mainly in the central Tsankhi area, according to Erdenes MGL, the state-controlled owner of the deposit.
In July the Mongolian government picked China Shenhua Energy Co., Peabody Energy Corp. and a Russian-Mongolian group to develop the Tavan Tolgoi deposit. A Shenhua-led group will get a 40 percent share in the project, while Peabody will hold 24 percent and the Russian-Mongolian venture 36 percent, according to a July 4 statement.
Dulam Sugar, chairman of Mongolia’s State Property Committee, which oversees the development of Tavan Tolgoi’s coal deposits, didn’t immediately respond to a phone call and an e- mail seeking comment.
To contact the reporters on this story: Cathy Chan in Hong Kong at kchan14@bloomberg.net; Fox Hu in Hong Kong at fhu7@bloomberg.net
To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net
The company plans to list in Ulaanbaatar to allow Mongolian investors to participate in the IPO, one of the people said, asking not to be identified because the information is private. BNP Paribas (BNP) SA, Deutsche Bank AG (DBK), Goldman Sachs Group Inc. (GS) and Macquarie Group Ltd. (MQG) will manage the sale, the people said.
Mongolian Mining Corp. (975), the nation’s biggest coking coal exporter, raised HK$5.8 billion ($744 million) in a Hong Kong initial public offering last October. The stock, which has gained 22 percent from its IPO price, closed at HK$8.54 yesterday.
Mongolia’s coal production doubled last year to 25 million metric tons to become the nation’s top export earner, spurring the government to push through development of mines. Tavan Tolgoi spans some 68,000 hectares (168,000 acres), with coking coal used in steelmaking located mainly in the central Tsankhi area, according to Erdenes MGL, the state-controlled owner of the deposit.
In July the Mongolian government picked China Shenhua Energy Co., Peabody Energy Corp. and a Russian-Mongolian group to develop the Tavan Tolgoi deposit. A Shenhua-led group will get a 40 percent share in the project, while Peabody will hold 24 percent and the Russian-Mongolian venture 36 percent, according to a July 4 statement.
Dulam Sugar, chairman of Mongolia’s State Property Committee, which oversees the development of Tavan Tolgoi’s coal deposits, didn’t immediately respond to a phone call and an e- mail seeking comment.
To contact the reporters on this story: Cathy Chan in Hong Kong at kchan14@bloomberg.net; Fox Hu in Hong Kong at fhu7@bloomberg.net
To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net
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