Shares in non-ferrous metal trader Simsen Metals (Holdings) jumped 33.33 per cent yesterday on news of a $453.6 million rights issue to fund a series of acquisitions. The counter closed yesterday at $1.40, after being suspended for the previous 10 trading days. Managing director Felipe Tan said the company would widen its earnings base by moving into metal and futures trading as well as aluminium smelting. The acquisitions will also see listed bullion trader RNA Holdings relinquish its majority stake in Simsen. Simsen launched a two-for-one rights issue at 90 cents a share, a 14.29 per cent discount to the stock's close of $1.05 on April 18 - its last trading day before dealing was suspended. The fund-raising exercise will generate $437 million, of which $120 million will be invested in financial services company Cheung's Enterprise (Precious Metals), controlled by Cheung Yan-lung and his son, Haywood Cheung. Cheung's will also pay RNA $37.92 million for 23 per cent of Simsen, which will provide a back-door listing for Cheung's. RNA will have its stake in Simsen reduced to 24.88 per cent from 48.36 per cent. Cheung's guarantees that its net profit will be not less than $30 million by April next year, against $26 million in the year to December. The company owns a commodities trading licence and is a member of the Chinese Gold & Silver Exchange Society. To house its offices and broking operations, Simsen will pay $120 million for three floors at the Cameron Commercial Centre in Causeway Bay. Mr Tan said Simsen would also invest $141.31 million in a smelter company in the Middle East.