China Molybdenum prices Hong Kong IPO at 5.0-6.80 hkd per share

04/12/2007, 10:40     [Xinhua Financial Network (XFN) News]    

HONG KONG (XFN-ASIA) - China Molybdenum Co Ltd said it has set the price range for the initial public offering (IPO) in Hong Kong of its 1.0836 bln H shares at 5.0 hkd - 6.80 hkd per share. Based on the number of shares to be offered and the price range, the company is expected to raise as much as 7.37 bln hkd from the IPO. Earlier, a market source said that the company had originally planned to sell the IPO shares at a price range of 5.0-6.40 hkd, but the strong interest generated by recent Chinese IPOs may have prompted the company to set a more flexible price range for its shares. The company said that of the total shares on offer, 90 pct will be allocated to international and institutional investors, while the remaining 10 pct will be offered to retail investors. It said it may increase the number of shares on offer by 10 pct depending on demand. Retail subscription will open tomorrow and close at noon on Wednesday next week.  

 Trading of the shares is expected to commence on April 26. Morgan Stanley and UBS Investment are arranging the IPO. China Molybdenum is a leading Chinese producer of molybdenum, a polyvalent metallic element used to strengthen and harden steel. The company will sell a total of 160 mln usd worth of shares to nine corporate investors in its upcoming IPO, including China Life Insurance Co Ltd,  Citic Pacific Ltd, Citigroup, New World Development chairman Cheng Yu Tung,  Bank of East Asia chairman David Li Kwok-po,  Henderson Land Development chairman Lee Shau-kee, the  Government of Singapore Investment Corp Pte Ltd,  Cheung Kong (Holdings) Ltd and its chairman Li Ka-shing. The company said Cheung Kong and its chairman, Li, will each subscribe to shares worth 10 mln usd, while the seven other corporate investors will each acquire shares worth 20 mln usd. The nine corporate investors have a lock-up period of one year, it added. The company also said it intends to use 20 pct of the IPO proceeds to expand its molybdenum production capabilities, 20 pct on the development of its own tungsten production, 40 pct for the acquisition of mines and mining rights in relation to mines with identified mining resources, 10 pct to repay bank loan and the remainder for working capital. The company added that it plans capital expenditure of 729 mln yuan for 2007. For the six months to June, the company expects to achieve a net profit of at least 950 mln yuan. leonora.walet@xfn.com lw/net  


04/12/2007, 09:29     [AFX Asia]    

HONG KONG (XFN-ASIA) - China Molybdenum Co Ltd said it has set the price range for the initial public offering (IPO) in Hong Kong of its 1.0836 bln H shares at 5.0 hkd - 6.80 hkd per share.  

Based on the number of shares to be offered and the price range, the company is expected to raise as much as 7.37 bln hkd from the IPO.  

Earlier, a market source said that the company had originally planned to sell the IPO shares at a price range of 5.0-6.40 hkd, but the strong interest generated by recent Chinese IPOs may have prompted the company to set a more flexible price range for its shares.  

The company said that of the total shares on offer, 90 pct will be allocated to international and institutional investors, while the remaining 10 pct will be offered to retail investors.  

It said it may increase the number of shares on offer by 10 pct depending on demand.  

Retail subscription will open tomorrow and close at noon on Wednesday next week. Trading of the shares is expected to commence on April 26.  

Morgan Stanley and UBS Investment are arranging the IPO.  

China Molybdenum is a leading Chinese producer of molybdenum, a polyvalent metallic element used to strengthen and harden steel.  

The company will sell a total of 160 mln usd worth of shares to nine corporate investors in its upcoming IPO, including China Life Insurance Co Ltd,  Citic Pacific Ltd, Citigroup, New World Development chairman Cheng Yu Tung,  Bank of East Asia chairman David Li Kwok-po,  Henderson Land Development chairman Lee Shau-kee, the  Government of Singapore Investment Corp Pte Ltd,  Cheung Kong (Holdings) Ltd and its chairman Li Ka-shing.  

The company said Cheung Kong and its chairman, Li, will each subscribe to shares worth 10 mln usd, while the seven other corporate investors will each acquire shares worth 20 mln usd.  

The nine corporate investors have a lock-up period of one year, it added.  

The company also said it intends to use 20 pct of the IPO proceeds to expand its molybdenum production capabilities, 20 pct on the development of its own tungsten production, 40 pct for the acquisition of mines and mining rights in relation to mines with identified mining resources, 10 pct to repay bank loan and the remainder for working capital.  

The company added that it plans capital expenditure of 729 mln yuan for 2007.  

For the six months to June, the company expects to achieve a net profit of at least 950 mln yuan.