1898 stock

China Coal Energy (1898) proposed to issue not more than 1.525 billion A shares which are not attached with over-allotment option. The A share issue is subject to approval from shareholders at the extraordinary general meeting; and approvals from the China Securities Regulatory Commission, other relevant approval authorities and market condition. Base on the closing price of $14.58 of the company's H share last Friday, the 1.525 billion A shares are worth $22.24 billion.

Subject to approval by the relevant regulatory authorities, the net proceeds from the A share issue will be used for the investment in and development of Erdos Project with an annual production capacity of 25 million tons of coal, 4.2 million tons of methanol and 3 million tons of dimethylether; Heilongjiang Project with 10 million tons of coal, 1.8 million tons of methanol and 600,000 tons of alkene; Phase II of China Coal and Coke Xuyang Limited Engineering Project with 2 million tons of coke; Shanxi Lingshi Project with 300,000 tons of methanol produced from coke oven gas; and China Coal Shuozhou Great Power Project with a capacity of 2X135 MW of coal gangue generated electricity. The remaining proceeds will be applied to supplement working capital for general corporate purpose, or acquisitions of core business related assets.

After completion of the A share issue, the proportion of domestic shares to the total number of shares will be increased from 65% to 69.03%, while proportion of H shares will reduce from 35% to 30.97%.
Resistance against in year high $15.64