IPO aims to raise as much as US$2.78b
By Winny Wang |
September 9, 2009, Wednesday
|
Print Edition
Print Edition
METALLURGICAL Corp of China Ltd plans to raise as much as 18.97 billion yuan (US$2.78 billion) in its initial public offering in Shanghai, the second-biggest IPO on the Chinese mainland this year.
The company will sell up to 3.5 billion yuan-denominated A shares at between 5 yuan and 5.42 yuan, equivalent to 19.8 and 21.5 times its earnings in 2009, it said in a statement to the Shanghai Stock Exchange.
A total of 2.1 billion shares will be offered online to retail and institutional investors today; 1.4 billion shares were issued offline for institutional investors from yesterday.
"The price at the trading debut is expected to move between 6.1 yuan and 7.4 yuan," said Guotai Jun'an Securities Co.
The company will use the proceeds from the Shanghai IPO to repay bank loans, build steel plants, develop properties and fund a US$1.4 billion Ramu nickel project in Papua New Guinea.
MCC will also sell up to 2.87 billion shares in Hong Kong to raise HK$19.6 billion (US$2.5 billion), the biggest Hong Kong IPO in 18 months, at between HK$6.16 and HK$6.81 apiece.
The proceeds will be used to develop overseas metallurgical and mine construction projects.
"MCC plays a leading role in the domestic metallurgical industry and we expect its business will develop fast in the following years backed by the country's 4 trillion yuan package and recovery in overseas infrastructure market," according to a China Securities Research.
The company will sell up to 3.5 billion yuan-denominated A shares at between 5 yuan and 5.42 yuan, equivalent to 19.8 and 21.5 times its earnings in 2009, it said in a statement to the Shanghai Stock Exchange.
A total of 2.1 billion shares will be offered online to retail and institutional investors today; 1.4 billion shares were issued offline for institutional investors from yesterday.
"The price at the trading debut is expected to move between 6.1 yuan and 7.4 yuan," said Guotai Jun'an Securities Co.
The company will use the proceeds from the Shanghai IPO to repay bank loans, build steel plants, develop properties and fund a US$1.4 billion Ramu nickel project in Papua New Guinea.
MCC will also sell up to 2.87 billion shares in Hong Kong to raise HK$19.6 billion (US$2.5 billion), the biggest Hong Kong IPO in 18 months, at between HK$6.16 and HK$6.81 apiece.
The proceeds will be used to develop overseas metallurgical and mine construction projects.
"MCC plays a leading role in the domestic metallurgical industry and we expect its business will develop fast in the following years backed by the country's 4 trillion yuan package and recovery in overseas infrastructure market," according to a China Securities Research.
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