15 Dec 2010 09:00

China Molybdenum to launch Shanghai IPO

Shanghai. December 15. INTERFAX-CHINA - Hong Kong Stock Exchange-listed China Molybdenum Co. Ltd. announced Dec. 14 it plans to launch an initial public offering (IPO) on the Shanghai Stock Exchange.

According to the announcement, the company will issue a maximum of 542 million A-shares. The per share price and expected launch date have not been disclosed.

China Molybdenum plans to use the capital raised to purchase a 50 percent stake in Jiangsu Province-based coking company Huanyu Group, as well as the exploration permits for a Xinjiang Uyghur Autonomous Region molybdenum mine. It will plow the remainder of the funds into a number of projects, including improvements to company open pit mining equipment, the second phase of construction at a molybdenum conversion project, and the joint exploration of mineral resources in Henan Province together with the Henan Provincial Bureau of Geo-exploration and Mineral Development.

The IPO is subject to approval from the China Securities Regulatory Commission (CSRC).

Based in Luoyang City, Henan Province, China Molybdenum has an annual ferro-molybdenum smelting capacity of 12,000 tons and a daily mining capacity of 30,000 tons.