Chinese coal miner Inner Mongolia Yitai Coal Co Ltd is seeking to raise up to $1.1 billion in a trimmed-down Hong Kong listing, according to the term sheet, in what is set to be the second-biggest share Hong Kong listing this year.
Shanghai B-share listed Yitai Coal, which is launching the offer on Wednesday, is selling 162.7 million shares in HK$43-53 each range, the term sheet said. The base offer represents about 10 percent of the company’s enlarged capital, it said.
If successful, Yitai Coal would be the first B-share company to trade in Hong Kong. (B-shares are a class of stock traded in mainland China denominated in either US dollars or Hong Kong dollars.)
The company, with a market value of $8.6 billion, was initially planning to raise as much as $1.5 billion but deferred the launch earlier this month. Several high-profile deals have been pulled or delayed because of choppy equity markets.
Including an overallotment option, Yitai Coal could raise up to $1.28 billion. The company has secured about $390 million in cornerstone investors, including $100 million from Datang International, $30 million from Baosteel Resources International, $30 million from King Link Holding among others.
The offer is expected to be priced on July 5 with trading set to start on July 12.
BOC International and China International Capital Corp (CICC) will act as sponsors and joint bookrunners with BNP Paribas, Bank of America Merrill Lynch, Macquarie and UBS.
Chinese brokerage Haitong Securities Co Ltd’s $1.7 billion offer in April is the biggest Hong Kong listing this year.
Category: Hong Kong