Telstra-scale float for QRN

QUEENSLAND Treasurer Andrew Fraser told Parliament the offer price for the QRN float will be revealed on Sunday.
Telstra-scale float for QRN Telstra-scale float for QRN Telstra-scale float for QRN Telstra-scale float for QRN Telstra-scale float for QRN

 

Blair Price

Pre-registration through the Queensland Rail National share offer website closes today, while a national advertising campaign has been running for weeks.

The Queensland Competition Authority recently gave the privatisation of the state’s coal rail network and coal hauler the all clear by approving the draft access undertaking agreement submitted last month.

The QCA overlooked some issues raised by haulage competitor Asciano and major miner Xstrata, which plans to launch Xstrata Rail in Queensland in the coming years to service its Wandoan project in the Surat Basin.

Unsurprisingly, Fraser expects a “value-for-money” result for the state’s taxpayers.

The state government expects QRN’s coal chain assets to reach a potential market cap of up to $7 billion after the IPO is made before year-end.

Plans to publicly float its coal chain assets were announced last year, as part of a series of public asset sales to reduce debt by up to $15 billion and win back a AAA credit rating for the state.

Queensland’s coal industry failed to halt the forthcoming float.

The Nick Greiner-led Queensland Coal Industry Rail Group recently abandoned its $A5.1 billion bid for QRN’s rail infrastructure after members of the consortium pulled out of financial commitments before crucial deadlines, causing the bid to collapse.

The unpopularity of the flagged public asset sales in the state led the Queensland government to produce its own “myths and facts” webpage and associated pamphlets, which were quickly criticised by economists and academics.

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