Coal Asia is staking its lot in
Davao Oriental and is earmaking P400 million of proceeds to be raised
from its initial public offering (IPO).
Coal Asia, which holds the second largest coal reserves in the country
with coal assets worth P12.5 billion, is going public in a bid to raise
P800M
in the Philippine Stock Exchange by the fourth quarter of 2012.
The net proceeds from the IPO is earmarked to bring the company’s Davao
Oriental mine into production by 2014, said the company, whole coal
assets has undergone independent valuation by the Multinational
Investment Bancorporation. .
Coal Asia has been luring investors from the power generation and cement
industries and investment funds wanting a stake in the company as a
means to ensure continuous supply of coal and a crack at potential
earnings from higher coal prices.
With its development of its high-grade bituminous coal mines in
Mindanao, Coal Asia is poised to ink long-term supply agreements for
thermal coal in the region.
