On February 19, Taiyuan City, Shanxi Province, China-based metallurgical coking coal producer Puda Coal announced the closing of its 2,855,652 share public offering and the exercise of the full allotment option by the underwriters to purchase an additional 428,348 shares of the company's common shares, bringing the total shares offered to 3,284,000. The offering was priced at $4.75 per share on February 12, 2010.
According to a company press release, including the over-allotment, the company expects to receive net proceeds, after underwriting discounts, commissions, and expenses, of approximately $14,54 million from the offering.
As SteelOrbis previously reported, US-based investment bank Brean Murray, Carret acted as lead manager and sole bookrunner and US-based securities and investment bank Newbridge Securities Corporation acted as co-manager in connection with the offering.
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.