Ten major coal IPOs

A Top 10 Coal IPOs (192) in the last decade demonstrates the scale of reserves (and the associated carbon emissions) and the level of capital being raised for the sector. These deals contributed:

  • Over 24 billion tonnes of proved and probable reserves
  • Over 50 Gt CO2 in potential emission if all the reserves are burnt
  • Over $21 billion raised in capital for coal exploitation and expansion

Geography

The diversity of geographic location demonstrates the truly global nature of the coal industry. Emerging markets are seeing increasing numbers of companies using the financial markets to raise capital, including some previously state-owned companies diversifying their ownership.

The role of US banks

Whilst the geography of the reserves spans the globe, the book runners and managers for the IPOs come from a smaller pool of financial institutions. The following summarises the international banks involved in these ten IPOs:

Bank

Number of IPOs

(out of ten)

Morgan Stanley

6

Citi

5

JP Morgan

4

Merrill Lynch

3

Deutsche

3

Barclays

1

BNP Paribas

1

Credit Suisse

1

HSBC

1

UBS

1

RBC

1

The dominance of the US banks is not specific to this sector or this group of IPOs. Statistics from Thomson Reuters indicate that JP Morgan, Morgan Stanley, BoAML, and UBS made the most globally from IPOs in the first half of 2009.[i] In 2010, the picture is similar with JP Morgan, Morgan Stanley, Goldman Sachs, Merrill Lynch and UBS topping the league table after three quarters of the year.[ii]


[i] http://www.reuters.com/article/idUSN2423574320090626

[ii] http://www.reuters.com/article/idUSN2625243720100926