Australian coal producer Yancoal has announced a stock market listing in Hong Kong that would lead to a dual listing alongside its place on Australia’s bourse.
The initial public offer has secured around 313.2 million Hong Kong dollar ($40 million) from Chinese coal company Shaanxi Coal and Chemical Industry Group Co as it plans to offer its shares at a price between $3 to $3.3 per share, higher than its last closing price.
Yancoal plans to launch an entitlement offer for shareholders to subscribe for 0.054 new shares in three major Yancoal shareholders in exchange for every one existing share in Yancoal as of December 4, if the Hong Kong offer is successful.
Yancoal aims to use the capital raised to repay its debts, finance new acquisitions and to increase its stake in the Australia-based Moolarben coal joint venture from 81 percent to 85 percent, which is currently undergoing a stage two expansion.