On December 8, China-based coking coal producer Puda Coal Inc., consolidator of twelve coal mines in Shanxi Province, announced that the company priced a public offering of 7,850,000 shares of its common stock at $12 per share. Macquarie Capital and Brean Murray, Carret & Co. acted as joint lead managers and bookrunners in connection with the offering.
Puda Coal expects that the offering will yield net proceeds, after expenses, of approximately $88.3 million, prior to the exercise of the underwriters' 30-day over-allotment option to purchase an additional 1,150,000 shares of Puda Coal's common stock.
Puda Coal expects to use the net proceeds of the offering, together with available cash, to fund previously-announced coal mine acquisitions and their consolidation and construction. The offering is expected to close on December 13, 2010, subject to customary closing conditions.