Resourcehouse May Raise $3.6 Billion in Hong Kong IPO, Term Sheet Shows

Resourcehouse Ltd., the Australian coal and iron-ore company controlled by Clive Palmer, is seeking as much as HK$28.2 billion ($3.6 billion) in an initial public offering in Hong Kong, according to a term sheet for the sale obtained by Bloomberg News.

The company plans to sell at least 5.7 billion shares at between HK$4.48 and HK$4.93 each, implying a market value of $7.1 billion to $7.8 billion, the terms show. About $2.4 billion of the money raised will be used to develop a coal project in Australia and $700 million will be allocated to its iron ore project, the sheet said.

Andrew Crook, a spokesman for Palmer, couldn’t be reached for comment on his mobile phone this morning.

Resourcehouse shelved an IPO in March because of market volatility, two people with knowledge of the matter said then. It was at least the second time that the company’s plans to sell shares in Hong Kong were postponed.

China Railway Group Ltd. (601390) and Metallurgical Corp. of China Ltd. have both agreed to invest about $200 million in the stock, the terms show. Pricing for the IPO is scheduled for May 31 and the shares may start trading June 9, according to the document.

The miner may also offer an overallotment option, allowing it to sell as much as HK$32.4 billion in stock in total.

BOC International Holdings Ltd., HSBC Holdings Plc, Royal Bank of Scotland Group Plc and UBS AG are managing the sale. The balance of the money raised will go its Cosmos project and loan repayments.

Resourcehouse started gauging investor demand in an IPO last week, two people said May 6.

To contact the reporters on this story: Jesse Riseborough in London at jriseborough@bloomberg.net; Fox Hu in Hong Kong at fhu7@bloomberg.net.

To contact the editors responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net; Amanda Jordan at ajordan11@bloomberg.net.

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