US-based Coronado to list after raising $550m in Australia’s biggest coal IPO

A Caterpillar Inc. D10T dozer pushes raw coal at the newly opened Ramaco Resources Inc. Stonecoal Alma mine near Wylo, West Virginia, U.S., on Tuesday, Aug. 8, 2017. From 2008 to 2016 production from West Virginia’s southern coalfields fell from 117 million tons to 36.6 million, now, the trend is reversing. With prices tripling over the last year for metallurgical coal, which is used in steel-making and hard to find elsewhere in North America, through mid-April of this year, coal output rose 9 percent in southern West Virginia compared with a year ago, according to the U.S. Energy Information Administration. Photographer: Andrew Harrer/Bloomberg

The owners of miner Coronado Global Resources Inc. raised about A$774 million ($550 million) in Australia’s biggest coal initial public offering after selling securities at the bottom end of the marketed range.

Chess Depository Interests were sold at A$4 each, Coronado said Sunday. The CDIs were offered at A$4 to $4.80 apiece, according to a prospectus issued late last month. The bookbuild for the sale on Thursday and Friday came amid a global sell-off in commodity shares. Trading is scheduled to start on Oct. 23 on the Australian Securities Exchange.

Coronado is the biggest producer of U.S. metallurgical coal, used to make steel. Majority owned by private equity firm Energy & Minerals Group, it has mines in America’s Central Appalachian region and an operation in Australia’s Bowen Basin. Coronado decided to list in Australia after a string of bankruptcies soured U.S. investor appetite for coal, chief executive officer Garold Spindler said in an interview last month.

“We are very pleased with the make-up of our register and in particular the strong support we have received from high-quality resources and income-focused investors,” chairman Greg Martin said in the statement.

Energy & Minerals will retain a 78.9 percent stake in Coronado, according to the statement, after deciding to sell fewer CDIs than disclosed in the prospectus.

About 193 million CDIs were issued under the offer, down from 290 million. Coronado’s IPO tops Aston Resources Ltd’s A$400 million listing in 2010 as Australia’s largest coal float, according to data compiled by Bloomberg.

Coronado was in a position to accelerate production at its Curragh mine in Queensland state to take advantage of strong metallurgical coal prices, Spindler said in the statement. Coronado acquired Curragh from Wesfarmers Ltd. in 2017 for A$700m.

Goldman Sachs, Bell Potter, UBS and Credit Suisse were joint sale managers on the deal.

Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.