Chinese coal miner Blackgold International Holdings is set to list on the Australian Securities Exchange in Perth tomorrow, after its $70.2 million initial public offering closed oversubscribed.
Chinese coal miner Blackgold International Holdings is set to list on the Australian Securities Exchange in Perth tomorrow, after its $70.2 million initial public offering closed oversubscribed.
Chinese coal miner Blackgold International Holdings is set to list on the Australian Securities Exchange in Perth tomorrow, after its $70.2 million initial public offering closed oversubscribed.
Blackgold issued 225 million new shares and sold 45 million vendor shares at 26 cents to raise the $70.2 million.
The raising was brokered by Melbourne-based Peregrine Corporate.
Blackgold chairman James Tong said the listing a was an important event for the future of Chinese business in Australia.
"We have been delighted with the institutional and investor support for the IPO, and we look forward to demonstrating to the Australian market that Blackgold is a quality company with experienced management and the capability to deliver strong earnings," Mr Tong said in a statement.
"The ASX has a tradition in, and understanding of, of the mining industry, boasting quality analysts and sophisticated mining investors.
Blackgold operates two underground thermal coal mines, which produced 733,000 tonnes of coal in 2010, predominantly supplied to power stations in the Shanghai region.
Blackgold said it planned to increase tonnage to 1 million in 2011, and 1.2 million in 2012.
After establishing itself in the Australian market, Blackgold plans a secondary listing on the Hong Kong Exchange to take advantage of the higher earnings multiples offered there.
"We wanted to initially list on the ASX to establish our credentials and make an impact on the Australian market," Mr Tong said.
"Blackgold is an earnings and cashflow company that has been operating profitably for 12 years.
"We have excellent access to infrastructure and direct interaction with our power generating customers that continue to demand increasing quantities of coal. We are expanding to try and meet this growing demand.
"We hope that the success of Blackgold paves the way for many other Chinese companies to see the ASX as the preferred option for listing."