BRISTOL, Tenn. – Contura Energy, Inc. today withdrew the initial public offering of its shares of common stock.
The company blamed the change on capital market conditions, according to a written statement.
The company’s principal selling stockholders unanimously determined that proceeding with the offering under current market conditions would undervalue the company, according to the statement. Contura was formed out of the bankruptcy of Alpha Natural Resources.
The company has withdrawn its registration statement on file with the U.S. Securities and Exchange Commission.
“We appreciate the diligent consideration given by our company’s principal stockholders during this process,” CEO Kevin Crutchfield said in the statement. “Proceeding with an IPO at this time is not the best course for our company or our stockholders. We will continue to analyze all strategic options and opportunities to maximize the potential of our young company.”
As previously disclosed, the company amended its debt agreements to permit an aggregate amount of $150 million of cash to be used for the July 13, 2017, payment of a $100.7 million extraordinary dividend and dividend equivalent and for the potential repurchase of company common stock at any time no later than December 31, 2017.
The company’s board of directors is considering creating a common stock buyback program with the remaining $49.3 million, according to the statement. The board’s analysis will take into consideration any legal or contractual limitations, actual and anticipated future earnings, cash flow, debt service and capital requirements, tax considerations, the trading price of the company’s common stock, and other factors that the board may deem relevant.