SouthGobi Energy Resources' (HKG:1878) "entry fee" for its Hong Kong initial public offering will be $6742.35.
The Canada-based coal producer operating in Mongolia is selling 22.95 million shares at a maximum offering price of $133.5 a share to raise up to $3.06 billion, according to its preliminary IPO document. The company has an option to upsize the deal by 15%.
The net proceeds will be $2.932 billion, of which 35% will be used for development of production facilities, 25% for construction and development of coal transportation infrastructure, 15% for exploration, 20% for technology assessment, and the balance for general working capital.
The company plans to go public in Hong Kong on January 29.
China's sovereign wealth fund, China Investment Corp (CIC), and Singapore's Temasek Holdings have each pledged to buy US$50 million ($390 million) worth of SouthGobi shares in the latter's IPO, according to the document. The shares are subject to a six-month lock-up period.
