Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Sibanthracite's Order Book Half Full

Coal miner Sibanthracite's order book for its planned London stock market flotation has been subscribed by more than 50 percent, two market sources said Thursday.

Sibanthracite set a price range earlier in July of between $7.00 and $9.50 per global depositary receipt (GDR) for the share issue. The order book is expected to be closed later Thursday, with final pricing announced Friday.

Sibanthracite declined comment about the order book.

The stock offering comes at a challenging time for coal producers, as China's industrial growth wanes and steelmakers struggle. Emerging markets which, like Russia, are weighted towards the resources sector, are also weak.

Sibanthracite, however, describes itself as a niche player offering a premium product — ultra-high-grade anthracite — that can be used as a substitute for coke in blast furnaces and continues to be in high demand.

The company controls 15 percent of the global market for anthracite and plans to increase that to 17 percent this year by focusing on the Asia-Pacific and Chinese markets, the company said recently.

The initial public offering (IPO) will enable Sibanthracite's selling shareholder GLG Emerging Markets Growth Fund to raise up to $214 million for its 25 percent stake.

After a slow start to the year for equity offerings, a number of Russian companies are planning IPOs, including VTB Capital, Tinkoff Credit Systems and hypermarket chain Lenta, according to sources.

JP Morgan, Morgan Stanley, Raiffeisen Bank and Sberbank are acting as joint coordinators and bookrunners for the Sibanthracite offering.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more