Listings to watch in 2011
The following listings look set to add further major coal reserves to the markets:
Vallar , Bumi and Berau are being consolidated into a single entity to be listed on the London Stock Exchange. Vallar plc is the investment vehicle set up by Nat Rothschild to acquire mining operations and establish a new major coal mining entity listed in London. The company has already negotiated majority stakes in the Indonesian companies PT Bumi Resources and PT Berau Energy. The new company will be the largest supplier of coal to China. [N.B. this will not be an IPO but a relisting following a reverse takeover.] Read more and view the prospectus
This privately owned Swiss company holds major investments in the mining sector, including currently owning one third of Xstrata. Glencore International AG has announced it intends to list a 20% stake in London.
Russian coke and iron producer KOKS Group plans an initial public offering of its existing ordinary shares and the issue of global depositary receipts in Moscow and London. Citi, UBS Investment Bank and VTB Capital are acting as joint global coordinators and joint bookrunners.
Erdenes Tavan Tolgoi
This state-owned Mongolian coal company owns a vast untapped coal deposit in the Gobi Desert. With an estimated 6.5bn tonnes of reserves, mostly coking coal, Tavan Tolgoi is the second-largest coal field in the world after Shengli in China. 18 Investment banks have bid to be involved in the offering, seeing it as a foot in the door to further expected mineral activity. The company is considering listing in London and Hong Kong. Read more