China Molybdenum $886-million IPO draws big investors
Reuters
theglobeandmail.com
HONG KONG — China Molybdenum Co. Ltd. is raising as much as $886-million (U.S.) in a Hong Kong IPO, and eight cornerstone investors including Hong Kong tycoons Lee Shau Kee and Li Ka-shing have already bought 20 per cent of the share sale, sources close to the deal said.
The firm, the country's largest producer of the minor metal used in steel production, kicked off a management road show on Monday. It is offering 1.08 billion shares, or 25 per cent of its enlarged share capital, between $5.00 (Hong Kong) to $6.40 apiece, the sources said.
The issue price range values the firm at 10.8 times to 13.8 times forecast 2007 earnings, almost a 20 per cent discount to rival Hunan Nonferrous Metals Co.'s 17 times price-to-earning ratio at the high end.
Other cornerstone investors include Bank of East Asia Chairman David Li, Beijing-backed conglomerate Citic Pacific, the Government of Singapore Investment Corp. and Citigroup.
Morgan Stanley and UBS are sponsoring the deal, which will close on April 18, with a trading debut set for April 26.
Mr. Lee is chairman of Henderson Land while Mr. Li Ka-shing is chairman of Hutchison Whampoa Ltd. and Cheung Kong (Holdings) The two, along with other Hong Kong tycoons, often invest in IPOs by big Chinese state-run firms. |
