Mongolian Mining Corp 0975

[winston]

MMC is set to be the first Mongolia-based company to list in the SAR.

It aims to raise as much as HK$7.8 billion, sources said.

The coking coal producer will open its retail book on September 27.

[winston]

Mongolian Mining Corp opened its public offering yesterday to tap up to HK$5.44 billion, 3 percent higher than its original target. The firm aims to sell 719.4 million shares at HK$6.48 to HK$7.56 each.

The miner plans to sell more coking coal directly to end-users to boost its profit margin. Less than 30 percent of its output is distributed through middlemen


Source: The Standard HK

[LenaHuat]

I'm tracking developments. Expecting overwhelming response.

[winston]

From Phillips:-

Valuation:

Compared to peers, the profit margin of Mongolian Mining exceeds 40%, which is relatively high. The leading P/E ratio of 2011 is between 13.6 and 16.6, which is higher than the average of peers.

Assume that the leading P/E ratio of 2011 and earning per shares are 15 and HK$0.5 respectively, the target price is HK$7.5. Compared to the median of offering price range HK$6.82 (HK$6.29-7.34), the potential increase is about 10%.

The recommendation is neutral.

[kennynah]

Assume that the leading P/E ratio of 2011 and earning per shares are 15 and HK$0.5 respectively

assume this...assume that.... can die one....

[greenhoney]

investors die, he still get paid.

[persistentone]

First off, what is the four digit security ID on the Hong Kong exchange for this new issue?

Second, can someone show a valuation analysis for this company based on reserves? I think earnings might be the wrong metric here. Mongolia is capital constrained and just as importantly transportation constrained. I don't think 2011 earnings would necessarily be meaningful, although it's great to hear that a mining IPO actually has plans for earnings.

Speaking of transportation, how soon will Mongolian Mining's mines have the needed infrastructure to scale transportation of additional coal to China?

Can someone talk about management of this company? Probably it's not A Team material, considering location.

Who are their key strategic partners for financing and for development?

[persistentone]

Mongolian Mining Corp opened its public offering yesterday to tap up to HK$5.44 billion, 3 percent higher than its original target. The firm aims to sell 719.4 million shares at HK$6.48 to HK$7.56 each.

Do you have a link to the prospectus.

I guess most HK IPOs are probably like the US ones, and the stock opens up well north of what the investors who buy into the IPO pay?

[winston]

Here's the link:-
http://www.hkexnews.hk/listedco/listcon ... 928013.HTM

I guess most HK IPOs are probably like the US ones, and the stock opens up well north of what the investors who buy into the IPO pay?

Depends on the pricing. The investors are not stupid. Recently, there was a Coking Coal company that was trading below the IPO price.

[persistentone]

Here's the link:-
http://www.hkexnews.hk/listedco/listcon ... 928013.HTM

I don't suppose they have that in a single PDF file somewhere? Why do they create 30 PDF files like that?

I found out that US investors are forbidden from investing in foreign IPOs for 40 days after the IPO. I live in such a screwed up country.