Bloomberg reported that Inner Mongolia Yitai Coal Co, the biggest coal producer in the Chinese region bordering Mongolia is seeking as much as USD 1.1 billion in a reduced Hong Kong stock offering.

The terms show Yitai Coal which already has dollar-denominated B shares listed in Shanghai is selling 162.7 million shares for HKD 43 to HKD 53 each. About USD 390 million of the shares are already allocated to cornerstone investors including Datang International Power Generation Co and Baosteel Resources Co.

According to the terms the amount of stock being offered represents about 10% of Yitai Coal enlarged capital. An additional 24.4 million shares will be offered in the overallotment option if there is sufficient demand. Yitai Coal initially planned to raise USD 1.5 billion in Hong Kong and has cut the size of its offering by almost a third.

Hong Kong equity offerings have decreased to their lowest level since 2009 amid falling stock markets as Europe debt crisis and China slowing economy hurt investor appetite for new stock sales.

Source - Bloomberg

(www.steelguru.com)