Sultan Mining plans to raise P480M via IPO
Local coal mining firm Sultan Mining & Energy Development Corp. is planning to raise P480 million through an initial public offering (IPO) of shares within the year.
Based on its registration statement filed with the Securities and Exchange Commission (SEC), Sultan Mining is planning to offer 480 million new common shares at a par value of P1 each share. Ten percent of which will be made available to local small investors.
The offer shares will represent 33.5 percent of the outstanding capital of Sultan Mining post-IPO.
Sultan Mining is 78.71 percent owned by Murphy Consolidated Holdings Corp.
Sultan Mining will use the proceeds from the IPO to fund its capital expenditures related to additional exploration of its coal operating contract (COC) areas, improvements and expansion of coal extraction and processing facilities and to pay debt.
Asian Alliance Investment Corp. has been tapped as lead underwriter for the IPO.
Organized in August 2007, Sultan Mining is primarily engaged in mining and energy operations, including exploration, extraction, processing and marketing of mineral and coal reserves and the conversion of these reserves into power, either directly or through subsidiaries or affiliated companies.
Last September, Sultan Mining increased its capitalization to P1.5 billion from only P10 million to facilitate the acquisition of 100 percent of sister firm M.G. Mining and Energy Corp. (MGMEC)
The acquisition was done through a share swap.
MGMEC is engaged in coal mining exploration and extraction, processing and trade of coal and other energy related products. It holds or exercises rights over COCs with the Department of Energy and presently holds a total of four COCs. Three of these COCs cover an aggregate of 10,740 hectares of fully explored coal bearing area in Bislig and Lingig, Surigao del Sur.
The other COC was issued in February 2005 for coal resources in Argao,
MGMEC also has an indirect beneficial interest in Sultan Energy Philippines Corp. equivalent to 12.96 percent of the total issued and outstanding capital stock of SEPC.
SEPC is the owner of a concession area of approximately 7,000 hectares within the Daguma coal deposit in the provinces of
MGMEC has started open pit mining operations in the Bislig deposit. After completing its mine plans, organization build-up, and road infrastructure, coal production is now ramping up.
The company now delivers coal to various customers in the power, cement and other industries. — With Donnabelle Gatdula
- Latest
- Trending
