Taiyuan City, Shanxi Province, China-based metallurgical coking coal producer Puda Coal, Inc, announced on February 11 that it intends to offer to sell, subject to market and other conditions, shares in an underwritten public offering and to invest the earnings in two new mines.
US-based investment bank Brean Murray, Carret will act as lead manager and sole bookrunner and US-based securities and investment bank Newbridge Securities Corporation will act as co-manager in connection with the offering.
The company also announced that its chairman Ming Zhao is committed to providing the company an unsecured RMB 100 million (USD $14.6 million) loan for a 12-month term at prevailing market terms.
Puda Coal, which owns eight coal mines in Pinglu County, Shanxi Province with 3.5 million mt annual production capacity, expects to use the earnings to fund the purchase price of the previously-announced acquisition of two coal mines in the same region.