SouthGobi Energy Stock Offering To Raise $ 400 Million HK

SouthGobi Energy, mining company based in Vancouver, plans to increase sales of shares of about HK $ 400 million. SouthGobi Energy 80 percent shares owned by Ivanhoe Mines, Canadian mining company, the remaining shares owned by the institutional investors and mutual funds.

Funds generated from SouthGobi Energy stock offering will be allocated to expand production capacity and access to regional infrastructure and transportation needs of the exploration of coal mining.

SouthGobi has coal mines in Mongolia, which has made coal production to meet demand for coal from China. SouthGobi will focus on exploration and development of thermal coal metallurgy.

Allocation of shares offered, 75 percent will be allocated to institutional investors, 15 per cent for Canadian investors and 10 percent for Hong Kong retail investors.