The IPO raised $A17 million through the issue of 28.3 million shares at 60c per share.

 

The share price hit a high of 80c in the junior’s first day of trading.

 

The company plans to use the IPO funds to continue its Bowen Basin exploration program to define JORC-compliant coal resources.

 

“Investors will benefit from a company with the intention of fast-tracking coal mining operations from its substantial tenement portfolio,” Endocoal managing director Rod Austin said earlier this month.

 

“The aim is to establish a JORC-compliant resource on at least one project by the second half of 2010.”

 

The IPO was supported by two cornerstone investors, steel trader Stemcor Australia with 6.04% and China-focused metallurgical coal producer Hidili International Development with 11.24%.

 

“There has been a heightened interest in the Australian coal sector by overseas corporate investors, underpinning the strength of coal market fundamentals,” Austin said today.

 

Endocoal’s tenement portfolio includes 10 exploration permits for coal covering 5000 square kilometres in Queensland’s Bowen Basin. To date, exploration licences have been granted on six tenements.

 

The company plans to concentrate on its Orion Downs and Rockwood flagship projects where exploration drilling began in September 2009.

 

Drilling at Orion Downs has identified export-quality thermal coal in a number of coal seams aggregating up to 12m in thickness, less than 7km away from Xstrata’s Rolleston thermal coal mine.

 

Endocoal has also registered interest in underground coal gasification activities for more than 50% of its coal tenement area.