Resourcehouse launches Hong Kong IPO
Resourcehouse has announced its first initial public offering (IPO) on the Hong Kong securities exchange, launching in initial share sale of $3.37 billion ($HK 28.12 billion).
After twice backing out of the planned Hong Kong IPO because of market uncertainty, the Brisbane-based Australian mining giant is expected to sell 5.72 billion new shares at a price range of $HK4.48 to $HK4.93 each.
"We've had very good response. We've been travelling in the United States and Europe and for the moment there's no thought of cutting anything," said the company’s owner Clive Parker.
"We believe investors will get more bang for their buck while we're launching our company."
The launch comes after the company has twice cancelled a planned IPO, once in 2009 and another in 2010, with Mr. Palmer citing unfavourable market conditions and the need for increased consultation with local shareholders and market representatives.
"We predict coal prices will move up rapidly in the next three to five years because of the increased numbers of people moving to the cities," Mr. Palmer said. "They need heat. Heating is one of those basic things."
Mr. Palmer said that nearly three quarters of the funds raised from the Hong Kong IPO will be used to develop the China First Coal Project in central Queensland, with output capacity aimed at 40 million tons a year.