Contura Energy Inc., which emerged from the bankruptcy of Alpha Natural Resources with its best coal assets, has cancelled its plan to take the new company public citing market conditions.
Based in Tennessee, Contura operates the Cumberland mine in Waynesburg and several other Appalachian mines, as well assets in Wyoming. About half of its coal revenue comes from metallurgical coal, which is used in steel making, according to data from the second half of last year.
Contura was hoping to raise between $138 million and $162 million from the offering.
“Proceeding with an IPO at this time is not the best course for our company or our stockholders,” CEO Kevin Crutchfield said in a statement on Thursday. “We will continue to analyze all strategic options and opportunities to maximize the potential of our young company.”
The announcement comes less than two weeks after Contura priced its shares. The company planned to sell 6 million shares at a price between $23 and $27 per share.
Anya Litvak: email@example.com or 412-263-1455.