China Metal Recycling IPO raises $200 million
Updated: 2009-06-18 07:08
(HK Edition)
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HONG KONG: China Metal Recycling (Holdings) Ltd, the country's largest recycler of scrap metal by revenue last year, has raised HK$1.55 billion ($200 million) in Hong Kong's second-biggest initial public offering so far this year.
The Guangzhou-based company sold 300 million new shares at HK$5.18 each, the top end of a HK$3.98 to HK$5.18 range, according to an e-mail sent to fund managers yesterday.
Money flowing into regional funds as well as buying by fund managers and individuals have fueled a 60 percent rally in Hong Kong's Hang Seng Index since March 9, reviving sentiment for new stock sales, according to data compiled by Bloomberg.
China Metal Recycling buys scrap steel, copper and other metals from international and domestic suppliers.
It uses heavy equipment and manual labor to separate the scrap into various components and makes recycled metal products used in construction, heavy equipment, automobiles, aircraft, ships and household appliances, according to an IPO document.
The company has plants in Guangdong, Hong Kong and Jiangsu with total annual production capacity of about 1.6 million tons, it said.
UBS AG managed the share sale. The stock is scheduled to start trading June 22.
IPO rush
A recent rally in the Hong Kong stock market has attracted a number of companies to rush in and float shares on the stock exchange.
Among the listing hopefuls, sportswear company 361 Degrees International plans to raise up to $323 million in an IPO, while herbal shampoo maker BaWang International aims to raise $213.6 million.
Lumena Resources Corp, the world's second-largest producer by capacity of a chemical used in detergents and medicine, surged 19 percent on the first day of trading after raising HK$1.15 billion in a Hong Kong IPO earlier this month.
The mainland chemicals maker soared to HK$2.38 in its trading debut with shares worth HK$1.2 billion changing hands as investors looked for bargains.
Sichuan-based Lumena, which priced its shares in the middle of an indicative range of HK$1.72-HK$2.56, raised HK$1.15 billion in a Hong Kong offering. Credit Suisse, Macquarie and BOCI handled the deal.
Meanwhile, American International Assurance, the Hong Kong-based unit of American International Group Inc, is also seeking to raise around $4 billion in what could be Hong Kong's largest IPO since China CITIC Bank Corp raised $4.2 billion in April 2007.
China Daily - Agencies
(HK Edition 06/18/2009 page4)