Real Gold Mining plans $132m IPO
Real Gold Mining plans to raise up to HK$1.03 billion ($132 million) in an initial public offering of shares in Hong Kong, raising capital for acquisitions and expansion.
Posted: Tuesday , 03 Feb 2009
HONG KONG (Reuters) -
mineweb.com
Real Gold Mining plans to raise up to HK$1.03 billion ($132 million) in an initial public offering of shares in Hong Kong, raising capital for acquisitions and expansion, the South China Morning Post reported on Tuesday, citing market sources.
The Chinese gold miner plans to sell 165 million shares, of which 36.8 percent are existing shares, at an indicative price range of HK$4.35 to HK$6.25 apiece, the newspaper said, citing a sales document obtained by fund managers.
The price range represents a price-earnings ratio for this year of 7 to 10 times, based on bookrunners' estimates. The proposed valuation is expected to be cheaper than that of rivals such as Zijin Mining (2899.HK)(601899.SS), which has a price-earnings ratio of 16.2 times, the newspaper said.
Citigroup and Macquarie are arranging the deal. Trading in the shares is expected to begin on Feb 23.
Real Gold, which plans to buy an asset in Xinjiang and may also look at opportunities in Inner Mongolia, is expected to be the first sizeable Hong Kong listing since shopping centre operator Renhe Commercial (1387.HK) went public last October, raising HK$3.39 billion ($435 million), the paper added.
The IPO market in Hong Kong and elsewhere has nearly stalled in recent months amid a severe downturn in global markets. (US$1=HK$7.8) |
