Shanghai Baosteel Group, one of the mainland's most profitable steel-makers, plans to raise about US$1 billion from a dual listing in Hong Kong and New York in the first half of next year.
It is understood Credit Agricole Indosuez will be the financial adviser while Merrill Lynch and China International Capital Corp will be the listing sponsors.
Shanghai Baosteel last year earned 1.02 billion yuan (about HK$951 million) net profit on a turnover of 28.79 billion yuan.
The company expects production to be reduced by about 160,000 tonnes to 10 million tonnes this year, a source said.
Shanghai Baosteel has annual production capacity of 11 million tonnes, of which the most profitable first and second phases of development account for about 70 per cent of the production and capacity.
The listing portfolio for Baosteel would mainly comprise the first and second phase of development, sources said.