Australian mining firm Resourcehouse Ltd. (0394.HK), controlled
by billionaire Clive Palmer, is seeking to raise up to US$3.6
billion in an initial public offering in Hong Kong, its fourth
attempt to list shares in the city after it postponed IPO roadshows
in March because of weak market conditions.
The Brisbane-based miner plans to sell 5.716 billion shares in
an indicative price range of HK$4.48-HK$4.93 each, ahead of a June
10 listing on the Hong Kong stock exchange, it said on Sunday.
The planned IPO comes as investors across the globe are
reassessing commodity prices after a long rally driven by increased
consumption of raw materials in developing markets that had boosted
expectations of future price rises.
Resourcehouse's IPO will be among the biggest this year in Hong
Kong, along with Swiss commodities trader Glencore International
PLC (GLDLF, GLEN.LN), which raised US$10 billion in a Hong
Kong-London listing this month.
Other foreign companies that plan to list in Hong Kong in the
coming weeks include U.S. luggage maker Samsonite, which plans to
list in June, and Italian fashion company Prada SpA, which is
scheduled to start bookbuilding for institutional investors on June
6 for its up to US$2 billion IPO.
Resourcehouse on Wednesday delayed its listing date in the city
by a day from the June 9 date originally scheduled. The Hong Kong
public offer, which accounts for 10% of the 5.716 billion shares
being sold, is now rescheduled to run between May 30 and June 2, a
change from the previous May 26 to May 31 timetable. It wasn't
immediately clear why the timetables for the share sale were
extended by the time.
The investor education, or roadshow where bookbuilding takes
place, was extended till June 2. The roadshow, which began May 17,
was originally scheduled to end on Tuesday.
Resourcehouse Chief Executive Officer Clive Palmer told a media
conference that the launch of the public offering was delayed as
his doctor advised him to take days off because of the hectic
roadshow schedule.
But he noted that there has been "very good response" from
investors in the U.S and Europe during the roadshows of its
institutional tranche so far, and he has no plan to reduce its
fundraising size from the Hong Kong IPO.
"We've been travelling in the United States and Europe..for the
moment there's no thought of cutting anything," Palmer said.
Resourcehouse had a net loss of A$2.9 million for its first half
ended Dec. 31 and expects its net loss for the 2011 fiscal year to
be no more than A$15 million, according to its prospectus.
Resourcehouse had a net loss of A$15.33 million for the year ended
June 30, 2010 and a A$1.7 million net loss the previous year.
Last June, the Hong Kong stock exchange revised the listing
rules so that mining companies that can show a "meaningful
portfolio of resources" could list even without a net profit or
cash flow. Russian miner IRC Ltd. (1029.HK), the iron-ore unit of
London-listed Petropavlovsk PLC (PPLKY, POG.LN), was the first
foreign miner to take advantage of that rule when it raised US$241
million in an IPO in October.
Resourcehouse, which currently has no commercial operations,
plans to use a large part of the proceeds from the IPO to fund a
thermal coal project in Central Queensland and an iron ore project
in Western Australia, according to its prospectus. Both projects
are scheduled to start first commercial production in 2014, the
company said.
Palmer expects the company will turn profitable on earnings
before interest, taxes, depreciation, and amortization, or EBITDA,
basis from the second quarter of 2015, when its projects start to
generate revenue.
The current offering is the miner's fourth attempt at a Hong
Kong listing since 2009. Most recently, Resourcehouse postponed
plans to raise around US$3 billion in an IPO in March, after
markets were roiled by the earthquake in Japan. That forced the
company to put the IPO roadshows on hold. Roadshow is the official
bookbuilding period and helps determine a final price.
In addition, Huaneng Renewables Corp. (0958.HK) is seeking to
raise up to US$956 million in a IPO ahead of listing on the Hong
Kong stock exchange on June 10.
The wind farm operator, which scrapped a plan to raise up to
US$1.28 billion in a Hong Kong IPO in December, plans to sell 2.486
billion shares in an indicative price range of HK$2.28-HK$2.98, the
company said Sunday.
The company, which will start the Hong Kong public offering on
Monday, said it will use the proceeds from the IPO to develop wind
power projects in China, purchase equipment, pay debts and acquire
wind power projects in China and overseas
Morgan Stanley is the sole global coordinator and a joint
bookrunner of Huaneng Renewables' IPO, China International Capital
Corp., Goldman Sachs Group Inc. and Macquarie Group Ltd. are the
joint-bookrunner.
BOC International is the sole sponsor and a bookrunner of the
Resourcehouse IPO, while HSBC Holdings PLC, UBS AG and Royal Bank
of Scotland Group PLC are the joint bookrunners.
-By Prudence Ho and Joanne Chiu, Dow Jones Newswires;
852-2802-7002; joanne.chiu@dowjones.com
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