Shenhua has already had discussions about share subscriptions with Australia's BHP Billiton and Rio Tinto, but according to South China Morning Post talks with Rio Tinto have ended, while BHP is unlikely to subscribe.
The company is also holding talks with other Chinese coal producers and businessmen and may choose three or four as strategic and corporate investors.
Shenhua is expected to launch an international roadshow within the next month to market the offer.
The offer's underwriters are China International Capital Corp, Deutsche Bank and Merrill Lynch.
Shenhua is thought to be seeking the involvement of Western mining companies in order to effect a transfer of mining technology and safety systems and enhance the company’s global profile, especially pertinent in light of China’s appalling safety record. Just released figures from China’s State Administration of Work Safety revealed accidents in China killed 1113 people in the first three months of 2005, up 20% on the same period last year.
