Wednesday, February 17, 2010

Optimum Coal Looking To Float In March

Optimum Coal, South Africa's sixth-largest thermal coal miner and its fourth largest coal exporter, is looking to to raise $300-$500 million via an initial public offering on the Johannesburg Stock Exchange in March according to sources in South Africa.

About 30 per cent of the company’s enlarged share capital will be offered valuing the firm at about $1 billion to $1.5 billion. The company announced on 1 February that it would float on the Johannesburg main board during the first half of this year. Proceeds from the IPO would repay debt and fund acquisitions.

Exports accounts for 45 per cent of Optimum’s sales mostly to Europe under a supply deal with BHP Billiton.

In the year to June 2009, the company generated earnings before interest, tax, depreciation and amortization of 1.4 billion rand ($181.8 million) on revenues of 4 billion rand ($519.5 million).

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