KEY POINTS:
The initial public offering (IPO) for Pike River Coal "substantially" exceeded the minimum 65 million shares on offer, float promoter New Zealand Oil and Gas says.
After several delays, the prospectus for the high grade, low ash, coking coal mine in the Paparoa ranges, 46km northeast of Greymouth, was finally registered in May.
The offer of 65 million shares at $1 each, with an option for 20 million additional shares, closed yesterday.
Today NZOG said the exact level of oversubscriptions would be known once all applications had been processed, with a final allotment notice for the IPO expected early next week.
NZOG said previously it would continue to hold at least 34.6 per cent of Pike River after the float, from a 61 per cent stake beforehand. Indian interests would hold 20.6 per cent.
Pike will be capitalised at $200 million if the option of an additional $20m is taken up in full.
Andrew McDouall, managing director of McDouall Stuart Securities, the lead manager of the IPO, said retail interest from New Zealand investors was "strong", as was that from NZOG shareholders through their entitlement in the issue.
Institutional interest from this country, Australia and elsewhere was "good".
The cost of developing the Pike River mine has been put at $207 million.
It is intended that 17.6 million tonnes of coal will be recovered from the Brunner seam over 19 years. That amounted to $2.3 billion over the mine's life, based on the exchange rate at the time the prospectus was registered.
Pike chairman John Dow previously has said the project has "interesting upside potential" with the possibility of further coal seams being located within the Paparoa range and a better recovery from the Brunner seam.
The mine will be a major employer on the West Coast as staffing ramps up from 21 to 150. It will be a major export earner, with the company planning to mine a million tonnes a year at a forecast US$150-160 a tonne.
Today NZOG chief executive officer David Salisbury said the successful float of Pike River was a key step for NZOG.
NZOG was well positioned for growth with Pike River and the company's three other building blocks, one of which was the Tui development, in which NZOG has a 12.5 per cent stake, where the first oil was due to flow by the end of this month.
The other two were the Kupe gas and oil development, where NZOG's stake is 15 per cent, which was on schedule for first production in mid 2009, and the company's exploration portfolio.
NZOG shares were down 1c to $1.23 in early afternoon trading, having hit a year high of $1.25 earlier today.
- NZPA
