Aluminum Corp of China Successfully Listed in New York and Hong Kong

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Last updated at: (Beijing Time) Thursday, December 13, 2001

Aluminum Corp of China Successfully Listed in New York and Hong Kong

On the occasion of China's formal entry into World Trade Organization, China's largest alumina producer Aluminum Corporation of China Ltd (Chalco) successfully listed on the Stock Exchanges in New York and Hong Kong respectively on Wednesday and Thursday, claiming it the first listed Chinese company abroad and the first Asian company listed in the US after the 9.11 terrorist attacks.

2.588 H shares issued

Of the total 2.588 H shares Chalco issued, 90 percent went public in the US and international markets at a price of US$17.7 per share, and 10 percent in Hong Kong at a price of HK$1.38 per share.

Raising funds of US$457 million

Chalco spokesperson said that although the international capital market has not yet totally revitalized, Chalco's H-share issuance has received a warm response in the US and international markets, raising funds of some US$457 million with much shares purchased at a price higher than the issuing price.

Chalco, Alcoa Form Strategic Partnership

China Aluminum Corporation Limited (Chalco) and Alcoa International (Asia) Ltd. of the United States approved strategic investor subscription agreements and signed an memorandum of understanding (MOU) on setting up a joint venture in China.

Under the strategic investor subscription agreement, Alcoa will buy Chalco's stocks equal to eight percent of Chalco's outstanding equity at the market price. This will be about 24 percent of Chalco's issued stocks.

Alcoa is also committed not to sell its Chalco stocks within 30 months after the IPO, the first launched by a Chinese company since the September 11 incident.

According to the MOU, the two parties will establish a 50-50 joint venture at Chalco's Pingguo Aluminum Co. in south China, and will expand Pingguo's production capacity significantly in the next few years.

The chairman of the joint venture will be appointed by Chalco and its general manager by Alcoa.

"This represents a great step towards a strategic alliance between China's largest aluminum company and the world's largest aluminum company," Chalco said in a news release.

By PD Online staff member Huang Ying

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