Vancouver-headquartered SouthGobi Energy Resources Ltd. (TSX:SGQ) plans to launch a public offering of shares on the Hong Kong Stock Exchange to directly tap Asian investment.
The company plans a global offering of 27 million common shares, about 85% of which will be offered through a new public share offering in Hong Kong and an international private placement. The remaining 15% will be offered in Canada.
SouthGobi plans to use proceeds of the share sale to expand production at its Ovoot Tolgoi coal mine, fund development of roads and railway to the mine and expand the company's exploration activities in the region.
The share offering is expected to close January 29. Citigroup Global Markets Asia Ltd. and Macquarie Capital Securities Ltd. will act as joint global co-ordinators, bookrunners and lead managers of the international offering.
Citigroup Global Markets Canada, Macquarie Capital Markets Canada, Genuity Capital Markets and Salman Partners will be involved in the Canadian offering.
SouthGobi Energy Resources' share price range during the past week: between $17.84 and $20; 52-week high: $20.39; 52-week low: $6.50.