KEY POINTS:
Investor access to the resource sector has increased today with the launch of the initial public offering (IPO) for coal miner Pike River Coal.
Pike River, which expects to list on the NZX and ASX, is seeking to raise $65 million in new shares at $1 per share,
with a minimum subscription of $3000.
It has reserved the right to accept up to $20 million in oversubscriptions which, if raised, should give Pike a capitalisation of $200m.
The capital raised will be used for continued development of the company's $2.3 billion coal mine.
NZX markets development manager Geoff Brown, said the offer would provide the first opportunity in 28 years for investors to get into a New Zealand export coal mining business.
The resource sector has also seen gold miner Glass Earth list in 2006 and L & M Petroleum in January this year.
New Zealand Oil & Gas plans to continue holding a stake of at least 34.6 per cent in Pike, from its present 61 per cent. Indian interest will hold just over 20 per cent.
The offer will close on July 10.
The Pike River project has been troubled by delays, due partly to the bedding down of a $20 million investment by Indian company Gujarat NRE Coke.
Construction began on the main mine tunnel in September but work is three months behind schedule after encountering different rock formations.
Then in December, its independent directors resigned complaining that NZOG was exerting too much influence.
But the project, which has taken decades to get off the ground, is expected to produce a boon for the West Coast and Port Taranaki from where the coal will be shipped offshore after being barged there.
The mine development cost is $207m including $64m spent to date.
Pike has signed a major supply contract with Nippon Steel and has other Japanese and Chinese companies knocking on its door.
No forecasts were provided in the prospectus. Australian listing rules prohibit such forecasts for companies with no track record.
NZOG shares were up a cent to $1.03 today. NZOG shareholders are entitled to buy one Pike share for every eight NZOG shares they own.
- NZPA