KEY POINTS:
Pike River Coal shares listed at $1.07 today - a 7 per cent premium over their $1 issue price.
The listing means the company has a capitalisation of $216 million.
The listing is a relief for exchange operator NZX which has only seen one small, New Zealand listing this year -- software company Xero. As in recent years, there have been a dearth of IPOs on the stock exchange.
Pike raised $85m in the IPO, accepting over subscriptions of $20m.
The Pike River coal mine project on the West Coast has taken decades to get off the ground.
The much anticipated IPO was delayed many times and as well as the delays, the company has been dogged by other problems including the en masse resignation in December of the independent directors who complained parent company NZ Oil and Gas was exerting too much control.
It has taken eight years to get all the necessary consents, including an access agreement with the Department of Conservation (DOC).
NZOG will continue to own just over a third of the company, down from 61 per cent. Indian interests will hold just over 20 per cent.
Some of the IPO delay was due to the bedding down of a $20m investment by Indian company Gujarat NRE Coke.
The company intends to mine 17.6 million tonnes of high grade, low ash, coking coal identified as recoverable from the Brunner seam over 19 years. That will amount to around $2 billion, at today's exchange rate, over the mine's life.
The project was begun in September and is expected to be a boon for the West Coast and Port Taranaki from where the coal will be shipped offshore after being barged there. Around $15-18m will be spent on Greymouth port upgrading its facilities.
As well as the mine development, there will be $90m invested in the transport chain -- getting the coal to Greymouth and New Plymouth from where it will be exported to Japan, India and China.
The mine development cost is $207m, around a third spent to date.
Pike has signed a major supply contract with Nippon Steel and has other Japanese and Chinese companies knocking on its door.
The company, which also will be listed on the ASX, is the biggest local IPO since Barramundi last year raised $100m.
- NZPA
