(Alliance News) - Bens Creek Group PLC shares climbed modestly in their first day of trading on the AIM market in London on Tuesday.
Bens Creek operates a metallurgical coal mine located on 10,000 acres in the southern part of the US state of West Virginia. It raised GBP5.8 million net in its initial public offering at a price of 10 pence per share, giving the company a market capitalisation of GBP35.0 million.
The stock was up 5.3% at 10.525p on Tuesday afternoon.
Allenby Capital Ltd and Optiva Securities Ltd acted as joint brokers, and Clear Capital Markets Ltd as placing agent.
"We experienced substantial investor demand, and our placing was significantly oversubscribed," said Bens Creek Chief Executive Officer Adam Wilson. "Investors clearly recognize that high quality metallurgical coal is a scarce commodity and the price has historically been significantly higher than for that of thermal coal, given that it is a critical input in the steel production process."
By Tom Waite; thomaslwaite@alliancenews.com
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Bens Creek (BEN)