Stocks News
- Chongqing Iron IPO raises US$130m
Date: 9-Feb-2007 Sources: (Shenzhen Daily)
STEELMAKER Chongqing Iron & Steel Co. said Thursday it raised 1.008 billion (US$130 million) from its domestic initial public offering (IPO) of A shares after they were priced at 2.88 yuan each.
The price was at the top of the indicative range of 2.80 to 2.88 yuan.
Chongqing Iron & Steel, which has already listed shares in Hong Kong, said the IPO price translates to 20.28 times 2005 earnings.
Guosen Securities Co., the lead underwriter of the offering, said Monday during an online roadshow it expects the A shares to list on the Shanghai Stock Exchange on Feb. 28.
The steelmaker said it sold a total of 350 million A shares in the offering, with 70 million shares sold to institutional investors and 280 million shares to retail investors.
The institutional tranche for the offering attracted subscriptions totaling 16.04 billion yuan, with institutional investors applying for 5.57 billion A shares, Chongqing Iron & Steel said.
But the company didn't give any more details about the retail tranche.
Chongqing Iron & Steel ranks about 35th among domestic steelmakers in terms of production capacity, and it plans to have an annual production capacity of 8 million tons of steel by 2010, company chairman Luo Fuqin told investors Monday during the online roadshow.
In 2005, the company produced 2.54 million tons of steel.
The proceeds of the IPO will mainly be invested in cold-rolled sheet steel facilities to help meet a 30 percent growth in demand for the product from Chongqing and its surrounding areas, board secretary You Xiaoan said.
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