June 13 (Bloomberg) -- LontohCoal Ltd., the South African coal miner that had planned to list in Hong Kong, is putting its $1 billion initial public offering on hold after market conditions deteriorated.
The IPO “will only go ahead when market conditions improve,” Renita Moonsamy, Hong Kong-based managing director of unit LontohCoal Asia Ltd., said today in an interview.
LontohCoal joins companies including China Nonferrous Mining Corp., Graff Diamonds Corp., and China Yongda Automobiles Services Holdings Ltd. in delaying Hong Kong share sales as Europe’s credit crisis and China’s slowing economy crimp demand for new equity. The Bloomberg World Mining Index has lost 22 percent from its 2012 high in February.
The Sandton, South Africa-based company planned to double the size of its share sale to as much as $1 billion to develop a coal operation in Zimbabwe, Chief Executive Officer Tshepo Kgadima said in an interview in January.
The company is “still very committed to Zimbabwe,” Moonsamy said today.
LontohCoal has agreed to sales agreements worth $320 million a year with two Chinese state-owned companies, it said in a statement on its website last month.
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