CNX Coal Resources LP – a master limited partnership formed by CONSOL Energy to house its Pennsylvania coal mining assets – has launched its initial public offering (IPO) of 10 million shares. The shares represent a 42.2% stake in CNX Coal Resources and will be offered at a price range of US$19 – 21 per share.
Following the IPO the underwriters will have a 30 day period to purchase an additional 1.5 million common units to cover over-allotments, should any occur.
The IPO is scheduled to take place on 22 June and aims to raise US$200 million. CONSOL Energy will retain a 55.8% interest in the company (or a 49.5% interest, if the underwriters exercise their full option to purchase additional shares). In addition, the Pittsburgh-based company will own a 2% general partner interest and the incentive distribution rights in CNX Coal Resources through its ownership of the CNX Coal Resources GP LCC – the general partner of CNS Coal Resources.
CNX Coal Resources plans to list on the New York Stock Exchange under the ticker symbol CNXC.
Written by Jonathan Rowland.