China Nonferrous Mining, Inner Mongolia Yitai Coal push through IPOs
Integrated copper miner China Nonferrous Mining priced its Hong Kong initial public offering (IPO) slightly above the bottom range, while coal miner Inner Mongolia Yitai Coal has kicked off its roadshow and institutional bookbuilding.
China Nonferrous Mining, which has assets in Zambia, raised HKD1.91 billion (USD246 million) after pricing its 870 billion shares or 25% of the enlarged share capital at HKD2.20, close to the bottom of the offering range between HKD2.10 to HKD2.80. About 99.5 percent of the shares are allocated to institutional investors.
The company introduced three cornerstone investors to the IPO, taking up a total of HKD545.3 million worth of shares, subject to a lock-up of six months. These are the subsidiaries of Cosco and China Railway Construction Corporation and investment company Wise Pine.
As of December 2011, China Nonferrous had 10 large-scale mining licences in Zambia covering a total area of about 218 square km. and one prospecting licence covering 339 square km. The expiration period varies from 2013 to 2031. It has four producing mines and two new projects that recently started operations.
Majority of the proceeds raised will be used for financing the exploration and development of its coal mine projects including Chambishi Southeast Mine, Chambishi Copper Smelter and Muliashi. It will use 15% each of the proceeds to repay loans and acquisitions of companies with mining rights and assets.
UBS, CICC and J.P. Morgan are the joint global coordinators, joint bookrunners, joint sponsors and joint lead managers of the transaction. The shares will start trading on June 29.
More IPO transactions have been launched to test the market after some small-sized deals are completed.
A closely watched deal is Inner Mongolia Yita Coal, which has also kicked off its roadshow and institutional bookbuilding on June 27 to raise up to HKD8.6 billion.
The B-shares-listed coal miner is offering 162.67 million new H shares at a range between HKD43 to HKD53 each. This is the first mid-sized offering launched after the USD1 billion IPO of high-end jeweler Graff Diamonds Corporation was pulled out in May.
The coal mining company has introduced seven cornerstone investors taking up a total of USD388 million or 35 percent of the IPO shares. Inner Mongolia Man Shi Investments and Vanzip Group will each take up 500 million renminbi, followed by Datang International, Reignwood International, Boasteel Resources, King Link Holding and Lion Fund.
Yitai has seven operating mines and two mines under development, mostly located in the Ordos region in Inner Mongolia.
It also owns and operates two local railway lines. For 2009, 2010, and 2011, Yitai sold 27.7 million tonnes, 35.7 million tonnes, and 38.3 million tonnes of coal respectively, representing a comnpound annual growth rate (CAGR) of 17.6% from 2009 to 2011. Its total revenue for 2009, 2010, and 2011 was 10.3 billion renminbi, 13.9 billion renminbi and 16.5 billion renminbi respectively, representing a CAGR of 26.9% from 2009 to 2011.
China Nonferrous Mining, which has assets in Zambia, raised HKD1.91 billion (USD246 million) after pricing its 870 billion shares or 25% of the enlarged share capital at HKD2.20, close to the bottom of the offering range between HKD2.10 to HKD2.80. About 99.5 percent of the shares are allocated to institutional investors.
The company introduced three cornerstone investors to the IPO, taking up a total of HKD545.3 million worth of shares, subject to a lock-up of six months. These are the subsidiaries of Cosco and China Railway Construction Corporation and investment company Wise Pine.
As of December 2011, China Nonferrous had 10 large-scale mining licences in Zambia covering a total area of about 218 square km. and one prospecting licence covering 339 square km. The expiration period varies from 2013 to 2031. It has four producing mines and two new projects that recently started operations.
Majority of the proceeds raised will be used for financing the exploration and development of its coal mine projects including Chambishi Southeast Mine, Chambishi Copper Smelter and Muliashi. It will use 15% each of the proceeds to repay loans and acquisitions of companies with mining rights and assets.
UBS, CICC and J.P. Morgan are the joint global coordinators, joint bookrunners, joint sponsors and joint lead managers of the transaction. The shares will start trading on June 29.
More IPO transactions have been launched to test the market after some small-sized deals are completed.
A closely watched deal is Inner Mongolia Yita Coal, which has also kicked off its roadshow and institutional bookbuilding on June 27 to raise up to HKD8.6 billion.
The B-shares-listed coal miner is offering 162.67 million new H shares at a range between HKD43 to HKD53 each. This is the first mid-sized offering launched after the USD1 billion IPO of high-end jeweler Graff Diamonds Corporation was pulled out in May.
The coal mining company has introduced seven cornerstone investors taking up a total of USD388 million or 35 percent of the IPO shares. Inner Mongolia Man Shi Investments and Vanzip Group will each take up 500 million renminbi, followed by Datang International, Reignwood International, Boasteel Resources, King Link Holding and Lion Fund.
Yitai has seven operating mines and two mines under development, mostly located in the Ordos region in Inner Mongolia.
It also owns and operates two local railway lines. For 2009, 2010, and 2011, Yitai sold 27.7 million tonnes, 35.7 million tonnes, and 38.3 million tonnes of coal respectively, representing a comnpound annual growth rate (CAGR) of 17.6% from 2009 to 2011. Its total revenue for 2009, 2010, and 2011 was 10.3 billion renminbi, 13.9 billion renminbi and 16.5 billion renminbi respectively, representing a CAGR of 26.9% from 2009 to 2011.
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