UPDATE 1-SouthGobi Energy eyes $200mln-$250mln HK IPO-source

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By Joseph Chaney

HONG KONG, June 1 (Reuters) - Canada-listed mining group SouthGobi Energy Resources (SGQ.V) has hired Citigroup (C.N) and Macquarie (MQG.AX) for a planned $200 million-$250 million initial public offering in Hong Kong, a source familiar with the matter said.

SouthGobi is focused on exploring and developing metallurgical and thermal coal deposits in Mongolia and Indonesia. Its flagship coal mine, Ovoot Tolgoi in Mongolia, sells coal to buyers in China.

The miner was seeking funds to expand in Asia and planned to complete the IPO in the next few months, the source said, adding that private equity firms could be interested in taking pre-IPO stakes in the company.

SouthGobi is among several companies eyeing IPOs in Hong Kong, as the market for offerings thaws after months of moribund activity.

Chemical maker Lumena Resources Corp on Monday began marketing an initial public offering seeking to raise as much as $191 million.

"There's a bit of a pulse in the market right now," the source added. The source was not authorised to speak publicly about the matter and declined to be named.

FORMER CITI BANKER

In February, Alexander Molyneux, Citigroup's former Asia-Pacific investment banking head of metals and mining, left the bank to take an executive position at SouthGobi.

Molyneux started work at the Vancouver-based coal producer in late April.

"The first thing is to establish SouthGobi Energy Resources in Asia," Molyneux told Reuters at the time of his hiring. "It's got to have more of a presence in the investment community here."

Last year, a Hong Kong newspaper reported that SouthGobi aimed to raise as much as $800 million from a secondary listing in Hong Kong. The source declined to comment on the report, or on SouthGobi's previous plans.

(Reporting by Joseph Chaney; Editing by Jonathan Hopfner and Chris Lewis)