Bowen Coking Coal launches $50m raise; billionaire Hans Mende tips in

afr.com:

Bowen Coking Coal has launched a $50 million equity-raising with backing from coal billionaire Hans Mende, Street Talk can reveal.

Hans Mende, a German-born billionaire has been a prolific investor in Australian coal via his vehicle AMCI. 

It is understood the company had its brokers, Petra Capital and Shaw and Partners, crossing investors on Tuesday.

The raise, which kicked off on Thursday morning, was split into an underwritten placement to raise $16.8 million and a 1 for 6 entitlement offer to raise $33.2 million.

The pricing settled at 9¢ a share or an 18.2 per cent discount to the last close and a 15.1 per cent discount to the theoretical ex-rights price.

Around $31 million of the deal was covered at launch by Bowen Coking Coal’s major shareholders including Crocodile Capital, Flannery family’s Illwella and Hans Mende. Other major shareholders include Regal at 13.7 per cent, Matt Latimore’s M Resources and Iolite Partners.

Of note, Mende would join the company’s register. Dubbed the “godfather of Australian coal”, the German-born billionaire has made several Australian bets in the past via his AMCI Group including Felix Resources, Whitehaven Coal, Gloucester Coal and Aquila Resources. He also had a stake in Australian Pacific Coal, where Latimore’s M Resources and his backers succeeded in defeating rival bidder Nathan Tinkler last year.

Potential investors were told the proceeds would be used to develop its Ellensfield South pit, as well as going after port and rail capacity.

The company, which last had cash on hand of $44 million, has said it is pursuing liquidity options as it works through its Burton complex. And on Wednesday, it upgraded its coal reserve estimate for the Lenton coal deposit – part of the Burton