Coal Energy targets raising PLN 225 mln in Warsaw IPO

Coal Energy S.A., Ukraine’s third largest private coal producer by reserves, announced on Friday it set its offer price at PLN 20 per share. The company plans to issue 11,252,780 shares, raising PLN 225 mln in gross proceeds. Debut on the Warsaw Stock Exchange is planned for August 4. The company expects to have free float of 25% following listing in Warsaw. Coal Energy plans to use proceeds from the offering to develop existing mines, waste dump processing and coal beneficiation plants, obtain new mining licenses, partially repay bank loans and other financial liabilities and reinforce working capital. In 3Q11 (FY ends June 30), Coal Energy produced 1.28 mln mt of coal. Coal Energy operates 10 coal mines; it has 235.5 mln mt of coal resources, of which 151.2 are proven and recoverable coal reserves.