China Coal aims for $4.5bn in Shanghai IPO

China’s second-largest coal producer, China Coal Energy, began holding an initial public offering this morning in Shanghai, which could raise US$4.5 billion and make it one of China’s 10 biggest IPOs, Reuters reported. China Coal will offer up to 1.5 billion new A-shares, of which 25% are reserved for institutional investors and the remainder will go to retail investors. The share offering represents 11.51% of China Coal’s enlarged share capital. The company has said it will use the proceeds to develop two projects in Inner Mongolia and Heilongjiang. China Coal’s Hong Kong-listed H-shares traded at HK$23.45 (US$3.00) on Friday.