October 26, 2010

Capital raising

Lontoh Coal considers Hong Kong IPO reportedly “to avoid Zimbabwe sanctions”

Lontoh Coal ,a South African unlisted mining company with projects in Zimbabwe, wants to do its next public offer in Hong Kong, according to a Reuters report. The initial public offer (IPO) aims to raise up to $500 million. According to the report Lontoh chief executive Tshebo Kgadima said he had chosen to list in Hong Kong as it might have been difficult for his company to sell shares in New York or London as the United States forbids trade or investment with Zimbabwean firms linked to the country’s president Robert Mugabe.