Chinese mainland's steel billet supplier to commence public offering in HK

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Last updated at: (Beijing Time) Wednesday, February 18, 2004

Chinese mainland's steel billet supplier to commence public offering in HK

China Group Company Limited (COGCL), one of the major steel billet suppliers in the Chinese mainland, will commence its public offer to Hong Kong investors Wednesday.

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China Group Company Limited (COGCL), one of the major steel billet suppliers in the Chinese mainland, will commence its public offer to Hong Kong investors Wednesday.

The company's global offering of 700 million new shares consist of a Hong Kong public offer of 70 million shares and an international offer of 630 million shares, subject to reallocationbased on demand.

The offer price will be between 2.10 HK dollars and 2.75 HK dollars, with the final price expected to be determined on Feb. 24.

The total capital raised would amount to 1.47 billion HK dollars (189 million US dollars) to 1.925 billion HK dollars (248 million US dollars). Shares will be trade in board lots of 2,000 shares.

Merrill Lynch & Co. land J.P. Morgan Securities Ltd are the joint global coordinators and joint bookrunners. The trading of COGCL's shares on the main board of the Stock Exchange of Hong Kong is expected to commence on March 2.

Commenting on the steel industry in the Chinese mainland, Han Jingyuan, chairman and chief executive officer of COGCL, said Tuesday that the Chinese mainland is now the world's largest steelconsumer, yet its per capita steel consumption is only equivalent to that of Japan's in the late 1950s.

Han said, "as a private enterprise, we have confidence in our flexibility to adjust to changing market conditions and to maintain our position as one of the lowest-cost and most efficientsteel producer in the Chinese mainland."

About 1.2 billion HK dollars (154 million US dollars) of the proceeds from the global offering will be used to fund capital expenditure and the remaining amount will be used to provide funding for general corporate purposes.

Source:Xinhua

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