You're reading: Coal miner raises $79 million via Warsaw listing

Energy Coal raises 39 percent less than expectd amidst worsening market conditions.

Coal Energy S.A., a privately owned Ukrainian coalminer, raised $79 million through an initial public offering of its stock on the Warsaw Stock Exchange, according to Kyiv-based investment bank Investment Capital Ukraine.

Coal Energy was valued at nearly $317 million after floating 25 percent of its stock at a share price of about $7. Analysts said the company attracted 39 percent less than expected.

The timing of this, the most recent in a flurry of Ukrainian Warsaw listings, appeared to be bad. According to reports, two other Ukrainian companies have pulled out of plans to list in Warsaw due to unfavorable market conditions. The Polish stock market has lost about 4 percent in the past month, analysts said.

In a note to investors, Investment Capital Ukraine wrote: “Negative investor sentiment prevailing over the last month made Coal Energy’s IPO much less successful than the December 2010 IPO of its predecessor, coalmine group Sadovaya Group.”

According to the investment bank, the listing price valued Coal Energy at $2.3 per ton of coal produced in accordance with its enterprise value as a fraction of proven and probable reserves. In comparison, the same figure for Sadovaya was $14.4 per ton.

Coal Energy posted a positive EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) of $12.7 million in the financial year ending June 30 2010 compared to Sadovaya’s negative $3.2 million for the financial year ending December 31 2009.