China's Major Iron & Steel Producer Going PublicThe Shanghai-based Baoshan Iron & Steel Co. Ltd., one of the largest iron and steel producers in China, is to issue its first public offering (IPO) of 1.877 billion shares of common shares, according to the company's prospectus.After the IPO, the company will have a total of 12.5 billion shares, making it the largest listed company in China. Its parent company, the Shanghai Baogang Group will hold 85 percent of the shares after the issuance. The company produced 7.5 million tons of crude steel in 1999, accounting for 6.1 percent of the nation's total steel output. It is also the largest producer of cold-rolled sheets and seamless pipes in China, holding a 16 percent and 18 percent, respectively, share of the market. By a relatively low price-earning ratio of 30, it is estimated that the company will be able to raise at least 15 billion yuan through the IPO. According to the prospectus, the company is approved to issue H shares and American Deposit Receipts for listings on the Hong Kong and New York stock exchanges after the IPO. |
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