H-share listing candidate Jiangxi Copper Co is expected to raise about US$200 million from an initial public offering in Hong Kong. Sources said the company had received permission from the Hong Kong stock exchange and would begin its international road show in two weeks. Trading in the company shares is expected to start mid next month, sponsored by ABN-Amro Rothschild and Merrill Lynch. Proceeds from the sale will be used to reduce the gearing of the company to less than 40 per cent, from the existing 60 per cent. They will also be used to fund expansion at the second phase of Guixi Smelter, in Jiangxi, which requires 1.5 billion yuan (about HK$1.39 billion) between 1996 and 1999. The company, the largest copper industrial operation in China, is 72 per cent owned by Jiangxi Copper Co with the remainder in the hands of International Copper Industry (China) Investment. International Copper is owned equally by China Non-Ferrous Metals Holdings (Hong Kong) Co and its 21.5 per cent-owned associate, Silver Grant International Industries. Both China Non-Ferrous Metals Holdings (Hong Kong) and Jiangxi Copper are wholly owned by state-owned China National Non-Ferrous Metals Industry Corp.