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China Metallurgical Corp takes orders for IPO
AFP - Tuesday, September 8
SHANGHAI (AFP) - - Metallurgical Corp of China started to take orders Tuesday for its domestic initial public offering worth up to 18.97 billion yuan (2.8 billion dollars), the nation's second largest this year.
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Metallurgical Corp, an engineering and construction firm, planned to sell the yuan-denominated A shares, or domestic investor shares, at 5.00 to 5.42 yuan each, the company said in a notice published in the official Shanghai Securities News.
The company had said earlier it would issue up to 3.5 billion shares, or 18.3 percent of its enlarged share capital ahead of a Shanghai listing. It is also selling up to 2.87 billion shares in Hong Kong.
Subscription for the institutional tranche of the A-share IPO, or 40 percent of the offering, started on Tuesday while subscription for the retail tranche will start Wednesday.
Proceeds from the share sale will be used for developing overseas metallurgical and mine construction projects and to buy equipment for the projects.
Metallurgical Corp's IPO is likely to be the second largest domestic IPO this year. In July, China State Construction Engineering, the nation's largest homebuilder, raised 7.3 billion dollars in the world's largest IPO this year.
Analysts have said a slew of share placements and massive IPOs could add further supply pressure to the stock market, which lost 22 percent in August.
Metallurgical Corp is setting a price range of 6.16 to 6.81 Hong Kong dollars (79 to 87 US cents) for its H-shares, or Hong Kong shares, with an option to raise the number of shares by 15 percent to raise a total 2.9 billion dollars, Dow Jones Newswires reported.
That would make its Hong Kong IPO the largest in the city since China Railway Construction Corp's 5.7-billion-dollar IPO in March last year.
The A shares will be priced on Thursday, the company said. State media have reported trading in A shares was expected to begin on September 21 in Shanghai, while it will debut in Hong Kong on September 24.
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