China Sees Coal In New Light
Chinese coal trader China Qinfa Group is planning an US$ 81 million (HK$630 million) Hong Kong IPO, for investment in new production facilities. The company is set to sell 250 million shares at a range of HK$2 to HK$2.52 per share, representing a 2008 price-to-earnings multiple of 7.5 to 9.5. Also, Alpha Natural Resources Inc (ANR.N) is to acquire Foundation Coal Holdings Inc (FCL.N) for $1.5 billion in an all-stock deal to create the third-largest U.S. coal producer, signaling an expected wave of consolidation in the fragmented industry.
