n a statement, the local coal mining and trading firm said it would offer shares worth P480 million, or 33.5 percent of the company to investors during a road show on June 18. It will sell its shares to the public for the first time from June 26 to July 2, and subsequently list in the local bourse on July 9.

The Philippine Stock Exchange has approved the maiden public offering of Sultan Mining and Energy Development Corp. (Smedc), which would be conducted two weeks from now.

Proceeds of the offering will be used to partially finance Sultan’s capital expenditures related to additional exploration of its coal operating contract (COC) areas, improvements and expansion of coal extraction and processing facilities, and pay existing bank obligations as well as beef up working capital requirements.

Rufino Bomasang, Smedc vice chairman, said the maiden share offering “comes at a time when there is strong demand for coal in both the domestic and global markets. This trend has thus raised interest in coal mining companies worldwide.” This gave the company the push to brave the uncertain markets that have been made volatile by concerns on oil and food prices.

To meet rising demand and take advantage of climbing prices, Smedc is increasing production of its mine in Bislig, Surigao del Sur, to at least 300,000 metric tons this year from less than 20,000 MT last year. The Bislig mine is now in full commercial production after the company purchased more heavy equipment to simultaneously develop and operate several open pits to dig up surface coal.

Using the IPO proceeds, additional open pits will come on stream that will allow the SMEDC to steadily increase production volume.

“For April alone, the production volume of 22,000 metric tons was a 120-percent increase from the previous month. It was also greater than the first quarter’s production for 2008,” Anthony Buyawe, chief finance officer, said. Last month, output grew to 25,000 MT.