HONG KONG -- Australian mining tycoon Clive Palmer formally launched the share sale for Resourcehouses public listing on the Hong Kong Stock Exchange on Monday.  The coal and iron ore miner is seeking to raise $3.6 billion by selling at least 5.7 billion shares at between 4.48 ($0.57) and 4.93 Hong Kong dollars ($0.63) each. The initial public offering ahead of the listing scheduled on June 10 is said to be the second largest this year. This is the company's fourth attempt since 2009 for listing in Hong Kong, the world's most active IPO market in 2009.  The Brisbane-based company, which has no commercial operations currently, intends to use more than 75% of the funds raised to finance its China First Coal Project, a thermal coal deposit in Central Queensland, and 22% for China First Iron Ore Project in Western Australia. The two projects are expected to start operation in 2014 and generate profits in 2015.  Resourcehouse is said to expect a net loss of no more than 15 million Australian dollars ($16 million) for the fiscal year ended June 30, 2011. The company had a net loss of 15.3 million Australia dollars ($16.4 million) for the year ended June 30, 2010, and 1.7 million Australia dollars ($1.8 million) the previous year.  According to Palmer, chief executive officer of Resourcehouse, the company's core business is to supply China. Resourcehouse has hired China Metallurgical Corporation, a state-owned enterprise, to build the coal mine and plans to sell its coal to China Power International Holdings.  "All of our suppliers and customers are Chinese," said Palmer in a press conference on Sunday. A major donor of Australia's opposition Liberal Party, he defended his close business tie with Beijing as a battle against the Labor government's protectionist-like policies for Chinese takeovers of Australian resource assets.  Palmer said he was optimistic about the prospects for coal prices because of the rising demand of electricity and heating from millions of Chinese moving from rural areas to the cities. He predicted the coal price would go up rapidly in the next three to five years.  The increasing price of oil and other raw materials has resulted from a combination of growing consumption in emerging markets and unease in the Middle East, has helped to boost Australia's resource-related companies and pushed up mining stocks.  Before Resourcehouse, Glencore International, a Swiss commodities trader had successfully raised $10 billion through IPOs in Hong Kong and London. Huaneng Renewables Corp., a Chinese energy company, is also seeking $956 million in a Hong Kong IPO.  Palmer was a property developer before using the proceeds to invest in mining. He is also the owner of resource company Mineralogy Pty and Australian football team Gold Coast United FC. In February, his net worth was conservatively estimated to be just under the minimum of $570 million required to make the Forbes Australia's 40 Richest List. After the IPO, Palmer's 53.6% stake in Resourcehouse may boost his wealth by as much as $4.2 billion.
Queensland magnate Clive Palmer's wealth will be boosted by $4 billion after Resourcehouse's public listing in Hong Kong.