Western mining seeks US$814m in IPO
(Shanghai Daily)Updated: 2007-07-02 12:48
China's Western Mining Co, a producer of zinc, nickel and copper, is
seeking as much as 6.2 billion yuan (US$814 million) in a Shanghai initial
public offering to expand production and buy stakes in other mines, Bloomberg
said today.The company will sell as many as 460 million new shares at 12 yuan to 13.48 yuan each, Xining, Qinghai-based Western Mining said today in a filing to the Shanghai Stock Exchange. UBS AG, Europe's biggest bank by assets, is arranging the sale, its first in China.
Investors are piling into Chinese share sales to tap surging economic growth, and a tripling of the country's benchmark Composite Index in the past year. China Molybdenum Co, the nation's second-biggest producer of the metal, sold additional shares to meet demand after its stock gained 59 percent on the first day of trade in Hong Kong in April.
"Investors are still crazy about IPOs because normally shares will jump after they debut," said Sean Zheng, who helps manage US$100 million at Dingtian Asset Management Co in Beijing.
China's demand for raw materials is growing along with the economy, which expanded 11.1 percent in the first quarter, and such appetite has helped send prices surging. Copper futures on the London Metal Exchange have risen more than fourfold in the past five years, touching a record last year.
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Western Mining will begin to take orders for 115 million new shares earmarked for institutions, from today until 3 pm tomorrow, the filing said. The remaining shares are available for subscription by individuals.
"Western Mining will price the shares at the upper limit because demand for new shares is very strong,"said Lu Yizhen, who oversees US$640 million at Citic-Prudential Fund Management Co in Shanghai. "But I won't buy the shares after its debut since the outlook for metals is quite unclear."
(For more biz stories, please visit Industry Updates)
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