Still waiting on judgement day at the coal face
Will Clive Palmer's Resourcehouse IPO ever get across the starting line? It's taken several attempts to get there, but just when we thought everything was in place, the programme has been delayed again. But only for a few days we are told. So, the offer will now open on Monday, not today, and the final prospectus won't be available until Monday.
The reason for the latest delay we are told is that the interest in the offer has been greater than anticipated and so the international road show has had to be extended.
Hmmm ... so despite the great interest, more time is needed. If we were of a cynical inclination, which of course we are not, we would assume that the delay was because interest was perhaps not as great as anticipated. But all will doubtless be revealed when the great day comes.
There are of course a number of 'ifs' and 'buts' surrounding this issue. Our eyes strayed to the 'Risks' section in the draft prospectus, where we see: 'We are an early stage development company, have no operations, and may not develop our business as planned, or at all.'
Not altogether encouraging. The company needs A$8 billion (HK$65.6 billion) to develop its coal project and A$2.7 billion for its iron ore project. It has a 'letter of intent' for funding the coal project from China Exim Bank. But as BOC International, the issue's sponsor, says in a research note: 'This letter is non-binding and does not provide guarantee of financing.' But don't let us put you off. Palmer's going to make a lot of money, the Chinese groups he's working with stand to make money, and maybe there'll be something for the shareholders, too.