Erdenes-Tavan Tolgoi LLC, the state-owned entity charged with developing the eastern block of the Tavan Tolgoi coal mine, has decided to drop for now Hong Kong as a venue for its up to USD 3 billion initial public offering (IPO). The IPO will reportedly occur in May.

The company will seek an IPO in London and Ulaanbaatar. The London listing would take place through global depositary receipts because of the speedier approval process. Erdenes-TT executives and bankers working on the deal met in Mongolia in the past days to discuss the plans, who are still taking into consideration a Hong Kong listing after the IPO.

B. Enebish, Executive Director at state-run Erdenes MGL LLC, said the IPO would likely take place in May and that the firm still intends to list in Hong Kong. Hong Kong does not currently allow companies domiciled in Mongolia to list in the Asia IPO hub, though Erdenes-TT can seek exemptions to list in the Chinese city.

BNP Paribas, Deutsche Bank, Goldman Sachs, and Macquarie were hired to manage the listings.