MINING billionaire Clive Palmer yesterday unveiled the long-awaited details of his $3 billion-plus Hong Kong float of coal and iron ore Resourcehouse group.
As reported in The Courier-Mail yesterday, Mr Palmer revealed vital details of the float including the fact that he would be raising as much as $HK28.2 billion ($A3.6 billion) via an IPO in Hong Kong.
In an advisory to the Hong Kong Stock Exchange, Mr Palmer said the company planned to sell 5.7 billion shares at between $HK4.48 and $HK4.93 each, implying a market value of $7.1 billion to $7.8 billion.
The document says about $2.4 billion of the money raised will be used to develop Mr Palmer's coal mines in Australia and $700 million will be allocated to its iron ore project.
The balance of the funds raised will go to Mr Palmer's Cosmos project and loan repayments.
Resourcehouse may also offer an over-allotment option, allowing it to sell as much as $HK32.4 billion in stock in total.
Start of sidebar. Skip to end of sidebar. Related Coverage Hong Kong: Palmer floats $3b mining company Japan chaos delays Palmer float End of sidebar. Return to start of sidebar. Total assets to be floated would include Mr Palmer's central Queensland thermal coal rights in the Galilee Basin and at least part of his remaining extensive magnetite iron ore ground in Western Australia along with 100sq km of oil and gas fields in Papua New Guinea.
The float of Resourcehouse has been on and off for the best part of two years.
It was shelved in March because of market volatility and is now back on the agenda.
According to the Hong Kong document, the company's pricing is due to be released on May 31 with shares expected to start trading on the Hong Kong exchange on June 9.
The float has attracted four major bankers who are managing the float the Bank of China International, Royal Bank of Scotland Group, UBS and HSBC.
China Railway Group Ltd and Metallurgical Corp of China Ltd have also both agreed to invest about $200 million in the stock according to the exchange filing.
ARH Price at posting:
27.5¢ Sentiment: None Disclosure: Held
