SouthGobi Completes $459 Million Equity Offering and First Listing of a Canadian Mining Company on the Hong Kong Stock Exchange
|Areas||Asia Practice, Corporate and Commercial, Corporate Finance and Securities, Mining and Natural Resources|
Goodmans represented SouthGobi Energy Resources Ltd. in connection with the completion of a global offering of 27,000,000 of its common shares ("Common Shares") by way of 2,700,000 Common Shares through a public offering in Hong Kong, 21,600,000 Common Shares through an international private placement (together the "International Offering") and a public offering of 2,700,000 Common Shares in Canada (the "Canadian Offering") at a price of C$17.00 per Common Share, for gross proceeds of C$459,000,000. The International Offering was conducted through Citigroup Global Markets Asia Limited and Macquarie Capital Securities Limited as joint global co-coordinators, bookrunners, lead managers and sponsors of the International Offering in conjunction with a secondary listing of the Common Shares on the Main Board of The Stock Exchange of Hong Kong Limited in addition to its current listing on the Toronto Stock Exchange. The Canadian Offering was conducted through Citigroup Global Markets Canada Inc., Macquarie Capital Markets Canada Ltd., Genuity Capital Markets and Salman Partners Inc. On February 26, 2010, the Canadian underwriters partially exercised their over-allotment option and purchased an additional 228,100 Common Shares of South Gobi for C$3,877,700 bringing the total gross proceeds of the offering to C$462,877,700. Proceeds of the offering will be used to expand South Gobi’s Ovoot Tolgoi coal mine in Mongolia, develop regional transportation infrastructure, construct additional facilities and expand its exploration activities. The listing was the first listing of a Canadian mining company on the Hong Kong Stock Exchange, and the first listing by any Canadian company in conjunction with a stock offering.