SOUTHGOBI ENERGY EYES $400 MLN

Ulaanbaatar, /MONTSAME/ Canada-listed mining group SouthGobi Energy Resources Ltd plans to raise about $400 million from a Hong Kong initial public offering this month, according to a term sheet obtained by Reuters.
SouthGobi, which started IPO premarketing on Monday, is focused on exploring and developing metallurgical and thermal coal deposits in Mongolia and Indonesia. Its flagship coal mine, Ovoot Tolgoi in Mongolia, sells coal to buyers in China.
SouthGobi is almost 80 percent owned by Vancouver-based Ivanhoe Mines with the bulk of its remaining shares held by institutional investors and mutual funds.
Of the offering, 75 percent would be allocated to institutional investors, 15 percent to Canadian investors and 10 percent to Hong Kong retail investors, the term sheet said.
S.Batbayar