Universal Coal lists on ASX

South African coal company Universal Coal has commenced trading on the Australian Securities Exchange after completing a $20.4 million initial public offering.

Universal Coal closed its IPO on November 5 after issuing more than 78.5 million shares at 26 cents per share.

"I would sincerely like to thank all shareholders for their support, enabling us to reach this key milestone," said Universal Coal executive chairman Tony Harwood.

"We have made significant progress moving our South African coal projects towards commercialisation during 2010," he said.

"Funds from the IPO will be applied to finance the Company's strong asset base, initially focusing on completion of a Bankable Feasibility Study for the Kangala Project with first coal production expected in Q1 2011."

In a statement to the ASX, Universal said the company was well advanced with plans to double its production levels within two years of first coal production at Kangala and to commercialise its Roodekop and Brakfontein thermal coal projects.