Canada-listed coal miner SouthGobi Energy Resources has secured Asia's top sovereign wealth funds, China's China Investment Corp and Singapore's Temasek, as cornerstone investors in its planned $400-million Hong Kong IPO this month, a source told Reuters. Each will buy $50-million worth of shares, said the source, who has direct knowledge of the deal but declined to be named due to the sensitive nature of the matter.
SouthGobi will kick off a marketing road show on Jan. 11, aiming to list on 29 January under the symbol "1878". The expected cash infusion follows a $500-million investment from CIC announced in October.
SouthGobi is expected to boost its coal production by more than sixfold to 8 million metric tons by 2012 at the Ovoot Tolgoi mine, about 950 km south of the capital Ulan Bator. SouthGobi is 79% owned by Ivanhoe Mines Ltd.