Markets

China Tin group seeks public float in A-share market

By Zhang Qi (China Daily)
Updated: 2010-09-14 10:20

China Tin Group, which has the largest tin reserves in the country, is seeking a public offering in the A-share market early next year, said a top company executive.

Li Yangtong, chairman of Guangxi Nonferrous Metals Group, which owns China Tin, said the parent company would inject into China Tin its tin, antimony, silver and zinc production assets.

The latter will hand in the application to the China Securities Regulatory Commission in October and plans to raise up to 2.5 billion yuan ($368 million) through the public float, Li told China Daily.

China Tin Group is also the nation's second-largest tin producer, but its revenue was much lower than its peer Yunnan Tin Group.

China Tin reported revenues of 4.5 billion yuan last year while Yunnan Tin's revenue was more than 12 billion yuan in 2009, according to the companies' annual report.

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Analysts said launching China Tin into the capital markets would help strengthen its competitiveness in the industry.

Tin for three-month delivery on the London Metal Exchange (LME) advanced 1.2 percent to $22,139 a ton. The metal is this year's best performer on the LME, rising 31 percent. Prices may gain further as supply falls short of demand, according to Macquarie Group Ltd.

Li said earlier that the company aims to list two of its subsidiaries within two years.

Company insiders said Guangxi Pinggui PGMA Co would be another platform for Guangxi Nonferrous to inject its tungsten and titanium assets into the capital market.

China Nonferrous Metal Mining Group Co (CNMC) said in July that it agreed to accelerate cooperation with Guangxi Nonferrous to create the conditions for the group to achieve its objective of capital operation.

Local media said CNMC and Guangxi Nonferrous would jointly develop tungsten and titanium resources in Guangxi, and smelting and concentrating of copper, aluminum, zinc projects.