Australian mining company Resourcehouse, controlled by billionaire Clive Palmer, launched its planned $3.6 billion Hong Kong IPO on Sunday, betting on rising coal prices to attract investors to its large initial public offering.
The company, which is raising funds to develop thermal coal and an iron ore project, has received positive feedback during meetings with investors since it started road shows almost two weeks ago, despite volatility in global commodity markets. Palmer said Resourcehouse has no plans to change the IPO terms or cut the offering size.
"We've had very good response. We've been travelling in the United States and Europe and for the moment there's no thought of cutting anything," he said at a press conference.
"We believe investors will get more bang for their buck while we're launching our company."
The company plans to raise HK$28.12 billion ($3.6 billion) with the sale of 5.72 billion new shares at a price range of HK$4.48 to HK$4.93 each. The company was set to launch the IPO on Thursday, but delayed it by four days, without giving an explanation. Resourcehouse postponed a roadshow in March, citing unfavourable market conditions, after previous attempts in 2009 and 2010.
"We have gotten out a couple of times to talk to investors, to find out what they thought how we should develop," Palmer said, downplaying potential issues. "We're a company that is prepared to listen to what the investor communities have to say."
Prices for oil, metals and other commodities have slumped in recent weeks because of concerns over higher interest rates in China, continued worries over a debt crisis in Europe, and tensions in the Middle East.
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