An Australian coal miner is carrying out the world’s largest mining listing since the height of the mining boom, going against the tide of shrinking coal markets.
Coronado Coal’s $4.4 billion listing comes as steelmaking coal prices fall sharply month on month on the back of escalating trade tensions between China and the United States, and the Department of Industry, Innovation and Science forecasts prices to fall heavily.
Despite this, the IPO has an indicative price of between $4 and $4.80 per share, valuing the company – which has coal mines in Queensland and the US – between $3.8 billion and $4.4 billion.
Coronado’s offering also looks to raise between $1.2 billion and $1.4 billion for a 30 per cent share of the company. For 2018, the company expects earnings before interest, tax and depreciation (EBITDA) of $US578 million ($795 million) and for FY19 it forecasts a 27 per cent uplift to $US737 million.
The funder, The Energy and Minerals Group, will sell down its 30 per cent share in Coronado and the rest will remain in escrow until the release of the 2019 financial year results in February 2020.