Scottish Resources in bid to revive flotation

THE UK's largest surface coal mining company, Scottish Resources Group, said it plans to revive its stock market flotation later this year after scrapping it at the 11th hour.

SRG delayed its plan to float late on Friday, joining other potential IPOs that have been postponed amid tough markets.

The company said: "Notwithstanding a well-received road -show to institutional investors in a challenging market for initial public offerings, the selling shareholders in Scottish Resources Group have decided that marketing securities should be paused for the summer."

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Shareholders plan to restart the process after the summer, the statement said.

The company is mostly owned by investment vehicles Parkburn and Palmaris Capital, who have held their stakes since 1994 when it was created out of the privatisation of state miner British Coal.

SRG is the second-biggest coal miner behind Doncaster-based UK Coal, and ahead of fellow surface miner ATH Resources, also based in Doncaster.

It is unclear what the delay will mean for UK Coal's sale of its Blair House open-cast mine in Fife. It was understood to be in advanced talks with SRG.

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Investors have been driving a hard bargain in turbulent market conditions. Earlier in July grocer Ocado dropped its IPO price at the last minute, while energy firm Fairfield and fashion retailer New Look postponed their flotations.

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