Pike River Coal chairman John Dow said after a late flurry of subscriptions, the total funds raised should be around $NZ85m.

The funds raised will allow the company to continue developing its Pike River coal mine on New Zealand's South Island, which has 17.6 million tonnes of identified premium hard coking coal.

On Monday, Pike River Coal allayed fears surrounding the potential cost of carbon dioxide emissions from its Pike River mine, advising future investors that costs would be immaterial.

New Zealand Oil & Gas (NZOG) will remain Pike River's largest shareholder, with 34.6% (excluding over-subscriptions) of the ordinary shares on issue.

Lead manager of the IPO Andrew McDouall said there had been strong retail interest from New Zealand investors and from NZOG shareholders via their entitlement in the issue, and good institutional interest from New Zealand, Australia and elsewhere offshore.

NZOG chief executive David Salisbury said the successful float of Pike River was a key step for NZOG as promoter of the float.

Pike River has sought approval for the shares to be listed on the New Zealand Stock Exchange and to commence trading on July 20, 2007.