China Coal estimates higher earnings, announces IPO

China Coal Energy estimated that its earnings in 2007 had risen 90% over the previous year, benefiting from a rise in spot coal prices. The company, China’s second-largest coal producer, also announced plans for an initial public offering in Shanghai, which could raise as much as US$4.8 billion for the company, the Wall Street Journal reported. China Coal plans to use proceeds from the IPO to fund projects in Inner Mongolia and Heilongjiang province. Based on the news, China Coal’s Hong Kong-listed shares rose 2.6% on Tuesday to close at HK$24.50 (US$3.14).