Bengang Steel Plates Co, an offshoot of China's fifth-largest steel-maker, Benxi Iron & Steel Co, is hoping to raise $952 million by selling 400 million B shares on the Shenzhen stock exchange next month.
The shares are priced at $2.38 each, putting them on a price-earnings multiple of eight times last year's earnings of 361.5 million yuan (about HK$337.8 million).
Trading is expected to begin on or before July 11.
The company has authorised its underwriters to issue up to an extra 60 million shares as an over-allotment option.
Shenyin & Wanguo Securities is lead underwriter for the sale while ABN-Amro Rothschild is the international co-ordinator.
Bengang's operations are focused on the production of hot-rolled thin gauge and medium gauge steel plates.
