Resourcehouse Ltd., the Australian coal and iron ore company controlled by Clive Palmer, increased the stake being sold in a revived initial public offering, according to two people with knowledge of the sale.
Palmer is seeking to sell as much as 49.9 percent of the company, up from 36 percent to 40 percent, said the people, who declined to be identified because the plan is confidential. The total amount to be raised in the Hong Kong IPO remains at about $3 billion, according to one of the people, indicating the per share valuation has fallen. Andrew Crook, an outside spokesman for Palmer, declined to comment when contacted by phone.
“The original proposal was fairly rich and it looks like it has come back down to more reasonable grounds,” Andrew Harrington, an analyst at Patersons Securities Ltd., said today by phone from Sydney. “Appetite for coal seems to be undiminished in China.”
Resourcehouse, seeking to develop iron-ore and coal projects in Australia, shelved an IPO in March because of market volatility, two people with knowledge of the matter said at the time. It was at least the second time that the company’s plans to sell shares in Hong Kong were postponed.
Resourcehouse started gauging investor demand last week for an IPO, two people said May 6. BOC International Holdings Ltd., HSBC Holdings Plc (HSBA), Royal Bank of Scotland Group Plc (RBS) and UBS AG (UBSN) are managing the sale, the people said.
The IPO managers will seek to set a price for the offering on May 31 and list the stock in Hong Kong on June 9, one person said. Palmer owns 100 percent of Resourcehouse.
Investors in the company include China Railway Group Ltd. (390) and Metallurgical Corp. of China Ltd., according to the terms of an earlier sale.