The listing will make Shenhua Energy the world's fifth-largest publicly listed coal producer, and the world's second-largest listed coal company in terms of proved and probable reserves.
The company produced 101.3 million tonnes of coal in 2004. Proved and probable reserves totalled 5.9 billion tonnes.
China’s biggest coal producer plans to sell the shares at $HK7.25-9.25 each, according to Dow Jones International News. Just over 17% of the company, or 3.0635 billion shares will be made available. The company had planned to list in Shanghai at the same but this has been cancelled due to poor market conditions.
Depending on what price tag is attached to the shares, Shenhua could raise $HK22.21-28.34 billion. At the top end of the range, Shenhua’s IPO would become the third largest in Hong Kong’s history. Even at the lower end it will still be one of Hong Kong’s largest. Some commentators expect Shenhua to price the stock at the bottom end of the price range.
Shenhua plans to sell its shares at a projected 2005 price to earnings ratio of about 8.8-12 times.
Following the IPO opening to retail subscribers from June 2-7 ,the pricing is set for June 8, with the listing scheduled for June 15.
Net profit in 2004 jumped dramatically to 8.94 billion yuan, up from 2.90 billion yuan in 2003. Revenue in 2004 was 28.08 billion yuan, up from 2003's 17.60 billion yaun.