US coal miner Contura Energy on Thursday said it was withdrawing an initial public offering of shares of common stock due to "capital market conditions."
The company said its principal selling stockholders unanimously determined that going ahead with the offering "under current market conditions would undervalue the company."
"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. "We will continue to analyze all strategic options and opportunities to maximize the potential of our young company."
Contura would have been the third US coal company to launch an IPO this year, joining pure-play metallurgical producers Warrior Met Coal and Ramaco Resources. But unlike the other two producers, Contura has a large thermal footprint that includes the Belle Ayr and Eagle Butte mines in the Powder River Basin and the Cumberland Mine in Northern Appalachia.
Contura first announced its intention to go public on May 8 and later said it would offer 6 million shares of common stock at an initial price of $23-$27/share.
