March 23rd, 2011 | Xinhua LontohCoal likely to be HK’s first IPO from South Africa
LontohCoal, a South African coal company, planned to launch an initial public offering on the Main Board in Hong Kong in the second half of this year, chief executive officer Tshepo Kgadima said on Tuesday.
If the IPO takes place, LontohCoal will be the first South African company to be listed in Hong Kong.
The company seeks $300 million to $500 million from the IPO in Hong Kong, followed by secondary listing on Johannesburg Stock Exchange in the fourth quarter.
Of the raised capital, $55 million will be used for developing steam coal plants to produce liquid energy fuel, and $200 million for expanding transportation network like railroads.
LontohCoal has hired Samsung Securities Asia Ltd as lead manager of its initial public offering in Hong Kong.
The company has four coal mining projects in South Africa and Zimbabwe producing and exploring coking, anthracite and thermal coal. It boasts an aggregate of more than 7 billion tons of reserves and resources.