Excel will offer 65 million shares at $2.00, in a bid to raise $365.5 million. The offer opens on March 31 until April 23, with ASX trading commencing on May 3.

“We are delighted to bring Excel Coal to the market and offer investors both in Australia and offshore, the opportunity to co-invest in our diversified portfolio of quality coal assets which have substantial growth potential in an industry with favourable dynamics,” said Excel MD Tony Haggarty.

Excel already received a confidence boost this week, the institutional offering being oversubscribed.

Excel Coal was formed in 1993 and earlier this year acquired 100% ownership of the New South Wales Metropolitan longwall from SouthCoal. Metropolitan was added to the assets of Wambo open cut in the Hunter Valley and Chain Valley underground mine near Lake Macquarie. The three mines are expected to produce 4.8 million saleable tonnes in the 2004 financial year.

Excel will also develop the Wilpinjong project near Mudgee, a large thermal coal resource with a low strip ratio. Mining is expected to commence in 2007 at a rate of three million saleable tonnes per annum, increasing to between five to seven million tonnes in 2009FY.

The Wambo expansion has a projected output of eight million tonnes, from three million per annum.

Goldman Sachs JBWere and Wilson HTM will act as joint lead managers for the float and Grant Samuel will act as financial advisor.