Coal Asia lists 4 billion shares at bourse

Manila Times.net
Written by Madelaine B. Miraflor Reporter  Published on 15 September 2012

Listed Coal Asia Holdings Inc., which holds the second largest coal reserves in the country, listed on Friday 4 billion common shares, which will be used for the development of its Davao Oriental province mining project and other purposes.

In a statement, the board of directors of the Philippine Stock Exchange (PSE), in its regular meeting, approved the application of Coal Asia for the initial listing of 4 billion common shares, with a par value of P1 per share, under the First Board of the exchange.

“The net proceeds from the offer will be used for further exploration work for both the Davao Oriental and Zamboanga-Sibugay province Projects, mine development of the Davao Oriental Project, and working capital purposes,” said the company’s disclosure to PSE.

PSE said that the offer period for the transaction shall commence on October 9, 2012 to October 15, 2012.

“The issue manager reserve the right to extend or terminate the offer period at any time subject to prevailing market conditions and the approval by the Security and Exchange Commission and PSE,” it added.

In July, Coal Asia Chairman Harald Tomintz confirmed that the company’s planned initial public officer (IPO) will afford the investing public the rare opportunity of buying in at the same price as the company’s incorporators.

He also confirmed that the time plan of Coal Asia to list 800 million shares at the PSE was the fourth quarter of 2012.

“The P726.87-million net proceeds from the IPO is earmarked to bring its Davao Oriental province mine into production by 2014 and its Zamboanga Sibugay province mine by 2015. Of the proceeds from the IPO, P100 million will be spent for the completion of the exploration and feasibility study of the Davao Oriental mine, P400 million for the development of the Davao mine, and the balance for continued exploration at the Zamboanga Sibugay mine and for working capital requirements,” said Coal Asia in its previous statement.   source