, Hong Kong

Mongolian Mining earns $650mln in HK IPO

Sources say company's shares priced at HK$7.02 each and valued at 12.6 times estimated 2011 earnings.

Mongolian Mining Corp, Mongolia's largest privately-held domestic producer and exporter of coking coal, raised $650 million by pricing its Hong Kong initial public offering at the middle of an indicative range, sources familiar with the deal said.

Mongolian Mining , whose Ukhaa Ukudag (UHG) mine is roughly 245 km from Mongolia's border with China, sold 719 million shares at HK$7.02 each, the middle of the range of HK$6.48 to HK$7.56 each, two sources said.

The sources were directly involved with the deal but not authorised to speak publicly on the matter.

Hong Kong's Hang Seng Index has gained 11 percent in the third quarter, with more than 20 companies tapping the market to raise funds in these two months, including American International Assurance's (AIA) $15 billion Hong Kong IPO.

At the offering price range, Mongolian Mining is valued at 12.6 times forecast 2011 earnings estimated by bookrunners.

View the full story in Reuters.

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