Henan mining group targets IPO

Yongcheng Coal and Electric Group plans to raise US$1-1.5 billion in a Hong Kong initial public offering next year, the South China Morning Post reported, citing market sources. The industrial conglomerate, based in Henan province, is principally focused on coal mining, producing 7.94 million tonnes of coal in the first eight months of the year. It also runs thermal energy, cement and hotel subsidiaries. With government-imposed consolidation looming in the coal mining industry, ambitious companies are keen to raise capital to fund mergers and acquisitions. Beijing wants to end up with three or four large-scale mining groups and around 10 medium-sized operators. Shares in China Coal Energy, rose 12.59% on their Hong Kong debut Tuesday, following the company's US$1.7 billion IPO.