DOW JONES NEWSWIRES
The estimated maximum size for the planned initial public offering of Rio Tinto PLC's (RTP, RIO.LN) coal assets was raised by 25% to $650 million, according to a filing Monday with the Securities and Exchange Commission.
Cloud Peak Energy, which makes up much of Rio Tinto's coal operations in the western U.S., in August had filed a new plan for its IPO, halving the proposed size to $500 million. The reduction came as coal companies have seen lower output and demand while electricity and steel output--two major coal users-- have experience their own reduced demand.
For the first nine months of 2009, the business reported earnings of $190.1 million on revenue of $1.06 billion, up from $25.8 million and $904.6 million, respectively, for the same period in 2008. Part of the prior surge was due to results from discontinued operations.
Cloud Peak said it is the third-largest coal producer in the U.S. Its stock has been approved for listing on the New York Stock Exchange under the symbol CLD.
IPO filings have jumped markedly the past several months as global equity markets have continued to move higher. However, some companies that have gone public recently in the U.S. haven't seen stellar initial trading performance.
-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com