Coal bed methane explorer seeks $400mn in IPO to fund expansion in China

The private Beijing-based coal bed methane explorer AAG Energy Holdings will seek to raise about US$400 million in its second attempt at an initial public offering in Hong Kong to help it pay for a planned US$617 million in expenditures over the next four years as the company expands resource development and production capacity, South China Morning Post reported, citing unnamed sources. The firm’s first IPO attempt 2012, which shot for US$200 million, was pulled when the firm’s investor-determined market value failed to satisfy existing shareholders. (For more on coal bed methane’s prospects in China, see our in-depth Q&A.)