• Mon
  • Dec 29, 2014
  • Updated: 9:55am

Recycler eyes HK$780m in offering

PUBLISHED : Monday, 28 June, 2010, 12:00am
UPDATED : Monday, 28 June, 2010, 12:00am

Chiho-Tiande Group, a mainland mixed-metal scrap recycler, plans to raise up to HK$780 million through a Hong Kong initial public offering that kicks off today.

The company, which recycles copper from motor scrap into other products, will offer 250 million new shares in international and local offerings at a price range of HK$2.43 and HK$3.13 per share. It hopes to raise from HK$607.5 million to HK$782.5 million before expenses.

The company estimated the net proceeds from the offering would be HK$641.1 million, assuming it can price the offer at the mid-point of the range, after deducting underwriting fees and other expenses.

Half of the funds raised will be used to buy raw materials. About 20 per cent will be used to enhance procurement networks and 12.5 per cent for upgrading production facilities in Ningbo and setting up new production bases in other cities. The rest will be used for repaying shareholder loans and general working capital.

The shares will start trading on the main board on July 12. The offer represents about 25 per cent of the enlarged share capital of the company.

'The global demand for non-ferrous metals is on the rise,' said Fang Ankong, executive chairman and chief executive of Chiho-Tiande. 'Given the limited resources of natural minerals, there are increasing signs that future supply will not be able to keep up with demand, generating a huge development opportunity for the metal recycling industry.'

Fang said the mainland had become the world's largest consumer of copper and aluminium scrap, which would boost the metal recycling industry on the mainland further.

The group's annual recycling capacity last year was about 607,242 tonnes. It reported a profit HK$187.59 million last year, which followed a profit of HK$31.94 million in 2008 and HK$82.96 million in 2007.

CCB International is the sole sponsor of the deal.

Share

Related topics

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive
 
 

 

 
 
 
 
 

Login

SCMP.com Account

or