(Bloomberg) — Erdenes Tavan Tolgoi JSC, the Mongolian state-owned coal miner, has picked banks including Bank of America Corp (NYSE:). and Credit Suisse (SIX:) Group AG to lead a planned Hong Kong initial public offering that could raise more than $1 billion, people familiar with the matter said.
The company plans to hold a kick-off meeting with its advisers as soon as next week to begin detailed work on the IPO, the people said, asking not to be identified because the information is private.
Tavan Tolgoi has been ramping up preparations for the IPO and targets a listing as soon as next year, Bloomberg News reported earlier this week. A successful share sale would mark at least the third effort to raise money to develop the Tavan Tolgoi mine after international partnerships failed in 2011 and 2015.
Mongolian lawmakers in 2018 approved a plan to sell up to 30% of Tavan Tolgoi mine. Tavan Tolgoi could add more banks to the deal at a later stage, the people said.
Representatives for Bank of America and Credit Suisse declined to comment, while representatives for Mongolia’s Ministry of Mining and Tavan Tolgoi didn’t immediately respond to requests for comment.
Tavan Tolgoi, which means “five hills,” refers to the original location of the coal ore, according to its website. The Tavan Tolgoi coal mine, located in the Gobi desert, is the largest coal ore deposit in Mongolia. Its deposit is estimated at a total of over 6 billion metric tons of coal, and more than one-third of which is high-grade hard coking coal, the website shows.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.