ErdenesTavanTolgoi, owner of one of the largest coking coal deposits in the world, has pushed back plans for its international share market debut to the first quarter of 2013.Chief Executive B.Enebish has said a listing in February or March next year was “more realistic” than hopes of a market debut in 2012.The state-owned company is planning to list 29 percent of its shares in a float that analysts expect could raise about $3 billion.
Enebish said ETT, which cannot complete listing plans until Mongolia’s parliament passes a key securities law, was waiting to determine the equity structure of the company after shares are distributed to Mongolian citizens.It is also hoping to advance core infrastructure projects including rail, road routes and a coal handling and preparation plant (CHPP) that should boost the value of the coal it mines. “Completion of these projects is very important for our company’s valuation. That is why we plan our IPO for next year,” he said, adding that building work would start within this year.
The delay to the listing will force the company to raise “several hundred million” dollars to pay for the start of the infrastructure projects and other work. Enebish said no decision had been made but options included a convertible bond.The company is pressing ahead with plans for a three-way listing in London, Hong Kong and Ulaanbaatar, potentially simultaneously, Enebish said, dismissing speculation the Hong Kong leg could be dropped. The London leg could be shares or global depositary receipts (GDRs).