Coal Energy Floats on the Warsaw Stock Exchange

Coal Energy floats on the Warsaw Stock ExchangeKyiv, August 4, 2011 - The Warsaw Stock Exchange (WSE) has begun trading shares of Coal Energy (CLE:PW), one of the largest private coal companies in Ukraine, which mines and beneficiates thermal and coking coal.

Coal Energy has placed 25% of its share capital through an IPO on the WSE, raising $81.4m of new equity capital. According to the rules of WSE, the first day of listing is August 4th. Dragon Capital was the lead-manager of the transaction, with assistance of Dom Maklerski BZ WBK (Poland).

This IPO is the 2nd largest ever made by a Ukrainian company on the Warsaw Stock Exchange and the largest since July 2008 in terms of funds raised.

"We are pleased with the results of the IPO. Despite the difficult situation on international capital markets and the reduced flow of funds on the Warsaw Stock Exchange because of pension reform in Poland, the management of Coal Energy and the arrangers of the IPO managed to attract a large number of investors and raise required funding for the company" said Victor Vyshnevetsky, Chairman of the Board Directors of Coal Energy.

During the IPO, the arrangers held meetings and conference calls with more than 80 institutional investors and Coal Energy’s management personally presented the company to investors on an 11-day road show in Moscow, Vienna, London and Warsaw.

“Coal Energy is a very high quality industrial asset with significant growth potential and a straight-forward business strategy. These reasons, along with the clear transaction structure and properly-selected timing for closing of the book, enabled completion of this deal during a difficult time for international capital markets when other issuers failed to arrange their IPOs", said Brian Best, Managing Director and Head of Investment Banking at Dragon Capital.

 

About Coal Energy

Coal Energy is the third-largest private coal producer in Ukraine in terms of reserves. The principal business of Coal Energy is mining, beneficiation and sale of thermal and coking coal. Under the JORC Code, the Group has 235.5 million tonnes of coal resources, out of which 151.2 million tonnes are proven and probable recoverable coal reserves.

The company currently operates ten coal mines, waste dumps processing and coal beneficiation plants. Coal Energy sells coal to power generation plants, coking plants, cement plants and municipalities. The company’s customers are located in Ukraine, Bulgaria, Slovakia, Moldova, and Turkey.

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