Reuters quoted three sources with direct knowledge of the plans said Erdenes Tavan Tolgoi, the state owned entity charged with developing the giant Tavan Tolgoi coal mine in Mongolia has decided to drop for now Hong Kong as a venue for its up to USD 3 billion initial public offering.

The sources who could not speak publicly on the matter said the company will seek an IPO in London and in Mongolia capital of Ulan Bator. The London listing would take place through global depositary receipts because of the speedier approval process.

Erdenes-TT executives and bankers working on the deal met in Mongolia in the past days to discuss the plans, which still take into consideration a Hong Kong listing after the IPO.

Mr B Enebish executive director at state-run Erdenes MGL said the IPO would likely take place in May. The offering, initially planned for late 2011 or early 2012 was pushed back because of turmoil in global financial markets and delays in securing parliamentary approval for the deal.

He said that "We still intend to list in Hong Kong."

Hong Kong does not currently allow companies domiciled in Mongolia to list in the Asian IPO hub, though Erdenes-TT can seek exemptions to list in the Chinese city.

(Sourced from Reuters)