Bowen Coking Coal raising $50m; hires three brokers


Metallurgical coal miner Bowen Coking Coal was passing around the hat for a $50 million raising on Friday morning to speed up production at its Burton Complex. The raise was split into a $40 million placement and a $10 million share purchase plan. It was priced at 17¢ a share, or a 22.7 per cent discount to the last close.

Prospective backers were told Bowen’s key shareholders Crocodile Fund UK, Flannery family’s Illwella and Matt Latimore’s M Resources were supportive and would participate in the raise.

Proceeds would be used primarily for a box cut into Ellensfield South.

Petra Capital was sole bookrunner on the deal, while Morgans and Shaw & Partners were joint lead managers.

Bowen shares were expected to go into a trading halt on Friday morning. It had a $405 million market capitalisation, and the shares are down 31 per cent this year.

Extracted Source: AFR