China aluminum firm seeks $1.6b from IPO
Friday, 24 April 2009
HONG KONG, Apr 23 (AP): China Zhongwang Holdings, a manufacturer of aluminum products, said Thursday it is seeking to raise as much as $1.6 billion in one of the biggest initial public offerings so far this year.
The company is selling 1.4 billion shares, or 25.9 per cent of its enlarged share capital, for between HK$6.80 and HK$8.80 a share ($0.88 to $1.14), according to the prospectus for the offer. The sale could fetch between $1.2 billion to $1.6 billion.
IPOs have been rare since the financial crisis erupted last year, sending shockwaves through markets and morphing into a global recession. With markets still volatile, and companies such as ailing banks making large cash calls on shareholders, investors have had little appetite for new share offers.
Zhongwang, headquartered in China's northeastern Liaoning Province, makes aluminum components used in railways, cars and aircraft.
It plans to use the IPO proceeds to make acquisitions, buy more manufacturing equipment, repay debt and for research and development.
The company, which says it made a profit of 1.9 billion yuan ($280 million) in 2008, expects to benefit from China's massive economic stimulus package, a large part of which will be spent on transportation infrastructure.
The company is selling 1.4 billion shares, or 25.9 per cent of its enlarged share capital, for between HK$6.80 and HK$8.80 a share ($0.88 to $1.14), according to the prospectus for the offer. The sale could fetch between $1.2 billion to $1.6 billion.
IPOs have been rare since the financial crisis erupted last year, sending shockwaves through markets and morphing into a global recession. With markets still volatile, and companies such as ailing banks making large cash calls on shareholders, investors have had little appetite for new share offers.
Zhongwang, headquartered in China's northeastern Liaoning Province, makes aluminum components used in railways, cars and aircraft.
It plans to use the IPO proceeds to make acquisitions, buy more manufacturing equipment, repay debt and for research and development.
The company, which says it made a profit of 1.9 billion yuan ($280 million) in 2008, expects to benefit from China's massive economic stimulus package, a large part of which will be spent on transportation infrastructure.