Coal miner Foresight Energy raises $350M in IPO

|About: Foresight Energy LP (FELP)|By:, SA News Editor

Foresight Energy (FELP) bets there's gold in coal, as the Illinois miner raises $350M in its IPO despite threats against the industry from regulators and competition from natural gas.

Foresight believes it is well positioned to supply coal because its Illinois mines have thick, contiguous seams and can be mined for one-third the cost of Appalachian mines.

The company controls three of the four most productive coal mines in the U.S., and demand for Illinois Basin coal generally is expected to increase to 185M tons in 2020 from 102M tons last year.

FELP today priced 17.5M shares at $20 each, valuing the company at $2.6B; shares are expected to start trading tomorrow.