Shougang Concord International Enterprises is to place 170 million shares at $1.10 each, raising $187 million for working capital and to reduce its debt. The shares are to be sold to private and institutional investors by Shougang Concord's controlling shareholder, Shougang Holding (Hong Kong), which represents mainland steel giant Shougang Corp in the territory. The shares would represent 11.25 per cent of the company's existing share capital and 10.11 per cent of its enlarged share capital. Shougang Holding will subscribe for the same amount of new shares at the same price. Following the transactions, Shougang Holding will reduce its stake in Shougang Concord to 44.28 per cent from 49.26 per cent. The subscription is conditional upon the completion of the placing and the relevant regulatory approvals.