PAC Partners launches $18m coal IPO
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Street Talk. Jim Rice
Stockbroker PAC Partners has launched coal miner Bounty Mining's $18 million initial public offering, asking clients to bid for shares by close of business on May 23.
The broker's equities desk sent terms to potential investors on Thursday, outlining Bounty's IPO.
The company is seeking to raise $14 million to $18 million at 35¢ a share, in a deal valuing it at $118.5 million to $122.5 million on a market capitalisation basis.
Up to 14.7 per cent of the company's issued equity is being offered at the IPO.
Funds raised were for deferred payments, investment in equipment and working capital, according to terms sent to potential investors.
PAC Partners was calling for bids by 4pm on May 23.
Bounty Mining's offer was scheduled to close on May 30, according to a prospectus lodged on May 1.
Bounty Mining is seeking to revive the Cook Colliery mine acquired late last year when Chinese-controlled Caledon Coal went into liquidation. It is understood the IPO has is backed by US-based Xcoal, as Street Talk reported last week.
B2Y Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
