Homegrown investment company Poh Group has announced it will list one of its Mongolian subsidiaries, Tian Poh Resources, on the Australian Securities Exchange (ASX) to raise up to A$6 million (S$6.97 million).

In a statement on Tuesday (Aug 26), the company said it is offering between 10 million and 30 million shares at 20 Australian cents each. Net proceeds from the IPO will be used to fund the development and exploration activities of Tian Poh's exploration assets in Mongolia.

Tian Poh holds 10 concessions spanning 125,000 hectares in Mongolia. Among its assets is the Huabei Kuangye coking coal deposit, which already has a 30-year mining licence.

Mr Poh Kay Ping, Ceo of Tian Poh and Poh Group, said in the statement that "our strategy is to generate early cash flow through bringing Huabei Kuangye to production, so as to fund the advancement of our other coal, gold and copper assets. We believe the timing for new shareholders is favourable given Mongolia's shift towards attracting and maintaining foreign investment and its pro-mining initiatives."

The share offer will close on Sep 15 and trading of the new shares on ASX is expected to start on Sep 24.

Source: CNA