Endocoal IPO confirms strong corporate interestEndocoal Limited...

Endocoal IPO confirms strong corporate interest

Endocoal Limited will open for trading today on the Australian Securities Exchange (ASX:EOC) after closing its Initial Public Offering (IPO) late last week.
Endocoals IPO has been supported by two cornerstone investors, namely:

Stemcor Australia Pty Ltd, a wholly-owned subsidiary of one of the worlds largest independent steel traders (see below) holding 6.04% undiluted; and
an affiliate company of Hong Kong-listed Hidili Industry International Development Limited (Hidili), a China-focused metallurgical coal producer (see below) - holding 11.24% undiluted.

Mr Rod Austin, Endocoals Managing Director said:

There has been a heightened interest in the Australian coal sector by overseas corporate investors, underpinning the strength of coal market fundamentals. Endocoal is therefore delighted to have companies of the pedigree of Stemcor and Hidili on its register. It is very exciting to have these companies taking strategic stakes in Endocoal which recognises the quality and upside potential of Endocoals coal and UCG interests in the Bowen Basin.

About Stemcor

Stemcor, formed in London in 1951 and controlled by the Oppenheimer family, is the worlds largest independent steel trader by tonnes traded.

Stemcor plays a pivotal role in the global steel industry, acting as a trading intermediary between producers and purchasers and providing a range of value-adding services. Steel goods traded include a wide range of long, flat, tube and semi-finished products. Stemcor employs approximately 1,500 people in 80 offices in 40 countries around the world. In 2009, Stemcor handled 15.2 Mt of steel and associated raw materials with turnover of 3.5 billion.

About Hidili

Hidili listed in 2007 on the Hong Kong Stock Exchange (1393.HK) and is a China-focused, fully integrated coking coal producer with a market capitalisation of approximately A$2.6 billion, with 43 mines across three provinces, producing approximately 2.8 million tonnes of metallurgical coal per year. After recent coal mine acquisitions and advancements in regional infrastructure, Hidili is well-positioned to benefit from the continued forecast steel production growth in China (10% in 2010 and 8% in 2011) Hidilis total coal production is expected to increase to 4.9 million tonnes by the end of 2010 and 10 million tonnes by 20121.