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Chalco shares rocket on A-share trading debut

(Xinhua)
Updated: 2007-05-01 09:21

Aluminum Corp of China (Chalco), the world's second biggest producer of alumina, made a spectacular debut on theShanghai Stock Exchange(SSE) on Monday.

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The company'sA shares-- shares reserved for domestic investors -- issued at a price of 6.6 yuan per share, rocketed by 180 percent on the first day of trading.

Chalco shares zoomed to 20.07 yuan in the morning and closed at 18.51 yuan in the afternoon, said SSE sources.

Chalco, which is also listed on theHong Kongand New York stock exchanges, issued 1.24 billion shares at 6.6 yuan on the SSE.

Part of the operation involved swapping Chalco shares for the shares of two other companies -- Shangdong Aluminium Industry and Lanzhou Aluminium -- which were then delisted.

"Given the contributions from Shangdong Aluminum and Lanzhou Aluminum, there will be no dilution of earnings per share," said Xiao Yaqing, Chalco chairman andCEO.

Chalco aims to increase its annual capacity for alumina to 13 million to 14 million tons by 2010 from 8.3 million tons in 2005, and more than triple its annual aluminum smelting capacity to five million tons from 1.5 million tons in 2005.