Mongolia Coal IPO likely to delay to September
Erdenes Tavan Tolgoi, the Mongolian coal miner planning a USD 3 billion initial public offering, said it delayed the foreign part of the deal by at least two months to September to help win listings in London and Hong Kong.
Chief Executive Officer Baasangombo Enebish said that the state run miner may list locally first as part of the government program to give citizens stock in the company and then pursue a sale overseas. Prime Minister Sukhbataar Batbold’s government had aimed to complete the IPO before June elections.
Mining companies have lost 27% of their market value since April last year, the Bloomberg World Mining Index shows, as global economic volatility curbed demand for resources.
The IPO will mark Mongolia’s first listing of a state run miner overseas as the country seeks to use its mineral riches to support an economy that grew by a record 17.3% last year.
Mr Enebish said that “Ideally, we’d like to go to Hong Kong and London together adding that Hong Kong law currently restricts accepting Mongolia as a jurisdiction for listed companies. And first we need to clarify what percentage we can actually sell in the IPO.”
He said that Mongolia’s parliament is due to vote on a new securities law that should allow entities registered in the country to be accepted by the Hong Kong stock exchange, Enebish said. Erdenes TT, as the company is known, would list shares or depositary receipts in Hong Kong. The London listing would be of global depositary receipts.
Otgonbat Sedbazar an adviser to the nation’s Resources Ministry said that Goldman Sachs Group Inc., Deutsche Bank AG, BNP Paribas SA and Macquarie Group Ltd have been hired as financial advisers.
Source - Bloomberg
(www.steelguru.com)
Chief Executive Officer Baasangombo Enebish said that the state run miner may list locally first as part of the government program to give citizens stock in the company and then pursue a sale overseas. Prime Minister Sukhbataar Batbold’s government had aimed to complete the IPO before June elections.
Mining companies have lost 27% of their market value since April last year, the Bloomberg World Mining Index shows, as global economic volatility curbed demand for resources.
The IPO will mark Mongolia’s first listing of a state run miner overseas as the country seeks to use its mineral riches to support an economy that grew by a record 17.3% last year.
Mr Enebish said that “Ideally, we’d like to go to Hong Kong and London together adding that Hong Kong law currently restricts accepting Mongolia as a jurisdiction for listed companies. And first we need to clarify what percentage we can actually sell in the IPO.”
He said that Mongolia’s parliament is due to vote on a new securities law that should allow entities registered in the country to be accepted by the Hong Kong stock exchange, Enebish said. Erdenes TT, as the company is known, would list shares or depositary receipts in Hong Kong. The London listing would be of global depositary receipts.
Otgonbat Sedbazar an adviser to the nation’s Resources Ministry said that Goldman Sachs Group Inc., Deutsche Bank AG, BNP Paribas SA and Macquarie Group Ltd have been hired as financial advisers.
Source - Bloomberg
(www.steelguru.com)
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