UPDATE: Aston Resources IPO Prospectus Likely To Be Lodged Next Week -Source

21st Jul 2010 06:46

By Cynthia Koons Of DOW JONES NEWSWIRES SYDNEY (Dow Jones)--Aston Resources is likely to lodge a prospectus for an initial public offering in Australia next week, a person familiar with the matter said Wednesday, the first major test for an IPO market that has been all but shut since a succession of disappointing floats late last year. The high-profile IPO of construction company Valemus, a spin off from the German construction and services company Bilfinger Berger AG (GBF.XE), was pulled earlier this month with the German parent citing adverse market conditions. Even though that IPO, which was expected to raise up to A$1.39 billion, was being viewed as a bellwether for the market, bankers have continued to work on the Aston deal, given the two companies operate in different industries. Aston Resources is privately held by mining investor Nathan Tinkler, who completed the purchase of Maules Creek from Rio Tinto Ltd. (RIO.AU) subsidiary Coal & Allied Industries Ltd. (CNA.AU) for US$480 million in February and has said he is looking to list 15%-20% of the company. The company has an enterprise value of A$2 billion, a person familiar with the matter said Wednesday. If Tinkler lists 15%-20% of the company, the IPO would be seeking to raise between A$300 million and A$400 million. Aston is also close to reaching an agreement with a cornerstone investor, the person said. The group will announce who or what company that is when the prospectus is lodged. Earlier this month, a person familiar with the situation said Aston was in talks with two Chinese parties interested in taking a cornerstone stake in its Maules Creek development and in securing coal offtake from the mine. Hong Kong investor Noonday Asset Management, has already agreed to buy a 30% stake in the company. -By Cynthia Koons; Dow Jones Newswires; +61-2-8272-4691; [email protected] (END) Dow Jones Newswires July 21, 2010 01:46 ET (05:46 GMT)