Coronado Global Resources Inc., a miner backed by private equity firm Energy & Minerals Group, and current investors are seeking to raise as much as A$1.4 billion ($1 billion) in what would be Australia’s largest coal initial public offering.
The company and existing holders are offering Chess Depository Interests at A$4 to A$4.80 each, according to a prospectus lodged with the nation’s regulator. That will give Coronado, the biggest US metallurgical coal producer, an enterprise value of as much as A$4.4 billion. Trading is scheduled to start October 23 on the Australian stock exchange, it said.
Coronado’s IPO is set to top Aston Resources Ltd.’s A$400 million listing in 2010 as Australia’s largest coal float, data compiled by Bloomberg show. A total of 290 million CDIs will be available under the offer, according to the prospectus.
Energy & Minerals will retain a 69 percent stake, new shareholders will own 30 percent and the rest will be held by management. A rebound in coal prices is helping producers generate significant returns again after a prolonged slump forced many to shut operations, shelve development projects and cut jobs. Coronado expanded into Australia last year with an agreement to purchase Wesfarmers Ltd.’s Curragh mine for A$700 million.