Chief executive Steve Bizzaca told ILN the company’s experience of managing 76 longwall moves had positioned it in the underground services market as a specialist that would further underground coal mining in Australia.

“Nearly every longwall move has contractors assisting them,” he said.

“At Narrabri we have been contracted to Bucyrus to do a surface build and install the longwall next year as well as doing shearer transportation.”

The company was created with the merger of Delta Mining and SBD Services in 2007 and now has companies such as Anglo Coal, BHP Billiton and Centennial as its clients.

Most of its 350 staff are based in New South Wales and this figure is expected to increase as the company secures new business in the coming months, Bizzaca said.

“We have a highly experienced staff who can specialise in things like longwall moves,” he said. “Some of our people have done five moves per year.”

The company is doing its third longwall move for Xstrata’s Ravensworth mine in NSW and it completely manages the 200,000 tonnes per annum Berrima mine in NSW for Boral.

After the IPO the company will be capitalised at about $34.7 million and will seek further work in underground roadway development and other specialist underground mining services.

Delta SBD is offering 3.75 million shares at 80c per share to its staff and to clients of Ord Minnett.

The directors intend to continue to declare dividends. In the 2010 financial year, the company distributed 30% of net profit after tax in the form of fully franked dividends.

Delta SBD chairman Gordon Galt said, “We believe this is a unique opportunity to participate in an investment in the mining services sector through a company which is strongly leveraged to the growth of the underground coal mining sector, servicing a blue-chip client base.

“Delta SBD is a highly successful and profitable mining services business driven by a very experienced and effective management team.

“One of the key drivers of the IPO is a desire by existing management to enable our valued staff to participate directly in the future of the business, driving increased loyalty and commitment to the continuous improvement of performance across the business.”

Bizzaca said Delta SBD was positioned strongly for growth because of its links to the growth in global demand for coal.

“In addition, Delta SBD has a solid workbook which is diversified across geographic regions and clients,” he said. “As well as servicing our clients across New South Wales and Queensland, we are focused on expanding into the existing and developing coalfields in New South Wales.”

At the end of the offer, new shareholders will comprise around 9% of the company on a fully diluted basis.