11/12/2009 - 13:31

$203m Q Copper float delayed

11/12/2009 - 13:31

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The $203 million offering of the largest resources float for this year, Q Copper, has been delayed after a UK investor, introduced by Cape Lambert Resources, had to pull out.

$203m Q Copper float delayed

The $203 million offering of the largest resources float for this year, Q Copper, has been delayed after a UK investor, introduced by Cape Lambert Resources, had to pull out.

Settlement of Q Copper's initial public offer was due to be today however parent company Cape Lambert placed a suspension order on its shares today, advising that the IPO has yet to be completed.

The Tony Sage-led Cape Lambert said it expects to make an announcement by the start of trade on Tuesday.

About 75 per cent of Q Copper's IPO was managed by Patersons Securities, which today said it had received strong demand with its portion oversubscribed, raising more than $150 million.

The remaining 25 per cent of IPO funds was to be raised by investors introduced by vendor, Cape Lambert.

"What has happened is that due to external market factors and seasonal timing, we have been informed that some vendor-introduced investors needed extra time to meet their settlement obligations," Patersons head of corporate finance Aaron Constantine said in a statement.

"It was agreed that a deferral had the potential to possibly create negative sentiment towards the IPO, despite the recent increasing copper price which has worked in favour of the Q Copper value proposition.

"The vendor Cape Lambert has accepted our advice that the issue should be restructured to enfranchise those clients that have made commitments to Q Copper & Patersons Securities.

"We have agreement with Cape Lambert and Q Copper around a reduced vendor consideration."

Cape Lambert plans to sell the Lady Annie copper mine in Queensland to Q Copper, with the bulk of the IPO funds, about $158 million if full subscription of $214 million is achieved, to go towards the payment. Cape Lambert will also take up to 10 per cent interest in Q Copper.

Mr Constantine told WA Business News the restructure of the offering will result in Cape Lambert receiving less for Lady Annie.

Market sources say the total amount raised for Q Copper's IPO could be reduced by up to 20 per cent.

Comment was being sought from Mr Sage at time of publishing.

Q Copper was due to hit the ASX boards on December 21, however with the day's turn of events, its expected the company will list next year.

Cape Lambert bought Lady Annie from the administrators of collapsed company CopperCo earlier this year.

Shares in Cape Lambert last traded at 53 cents.


 

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