(Repeats story published late on Thursday)
By Jan Korselt
PRAGUE, April 10 (Reuters) - Hard coal miner New World
Resources (NWR) said it would list up to a third of its shares
in the Czech Republic's biggest initial public offering, which
could value the firm $4.1-6.7 billion.
NWR said on Thursday it intended to float 25-33 percent of
shares, with a "substantial" proportion of existing stock.
The offering, to be completed in the second quarter, is
planned in London, Prague and Warsaw.
"All the mining world is listed in London. Coal mining
companies access capital in London," Chief Financial Officer
Marek Jelinek said.
"We also expect substantial demand for our shares on the
Czech market, and Warsaw (is planned) because we are very
serious about expanding our business to Poland and we believe
that listing in Poland will help us," Jelinek added.
The company declined to say how much it expected to raise in
the offering.
Analyst Josef Nemy from Komercni Banka, a unit of Societe
Generale, put the value of the firm at 65-71 billion crowns
($4.10-4.47 billion).
Petr Novak of brokerage Atlantik FT valued the firm at 4.2
billion euros ($6.66 billion), which would make the IPO worth up
to 1.4 billion, based on 2007 results.
"The shares of NWR could attract investors due to rising
prices of coal on global markets. Demand for coal is strong
thanks to the expansion of the steel and metallurgy industries,"
said Novak.
NWR said contracted coking coal prices jumped 61 percent
this year from 2007, while steam coal prices rose 44 percent.
Co-owner and Vice President Zdenek Bakala said the firm had
booked revenues above its original plans so far in 2008, but
gave no further details.
The Dutch-registered NWR is the full owner of Czech firm
OKD, which mines coking and steam coal in the eastern Czech
Republic. NWR plans to develop two mines in Poland, across the
border from its Czech operations.
Jelinek said NWR would use the IPO proceeds to fund the
expansion as well as modernisation of its current mines.
UNTOUCHED BY VOLATILITY
The company postponed the IPO late last year due to
financial markets volatility. Jelinek said he believed the
mining sector was not hurt due to rising commodity prices.
NWR picked Morgan Stanley, Goldman Sachs and JP Morgan
Cazenove as joint global co-ordinators and bookrunners.
Citigroup is a joint lead manager.
NWR said its revenue rose 10.7 percent last year to 1.37
billion euros ($2.17 billion), and net profit jumped 94 percent
to 196 million euros.
The firm said it would keep the dividend payout ratio in the
following years at 50 percent of the net profit in its mining
division, which accounts for the bulk of operations. It paid 2.2
billion crowns from last year's income.
NWR's biggest customers include steel mills such as Arcelor
Mittal Steel <MTP.PA> <ISPA.AS> and U.S. Steel <X.N>, energy
utilities such as CEZ <> and large industrial companies
in central Europe.
The company said it had 419 million tonnes of proven and
probable saleable reserves.
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(Writing by Jan Lopatka; Editing by Paul Bolding)
