In a rare bid to escape the limitations of the mainland's persistently anaemic equity markets, Shanghai-listed Nanshan Industrial plans to raise at least US$100 million by spinning off and listing its aluminium business in Hong Kong early next year.
The Shandong-based company is one of the largest aluminium producers in China, capable of making 156,000 tonnes of primary aluminium and 90,000 tonnes of extruded aluminium profiles.
A spokesman for Nanshan Industrial confirmed to the South China Morning Post that the company was seeking to list its aluminium business in Hong Kong, but that it had no detailed plans at present.
'The company is now recruiting a listing sponsor. Potential candidates include CICC and ICEA,' the spokesman said. Both investment banks declined to comment.
According to sources, Nanshan Industrial, which is also involved in textiles, would restructure its aluminium business before going public, with the aluminium arm listing as a Hong Kong-registered red chip.
Nanshan's unusual move allows it to shake off the torpor in the mainland market by shifting the jewel in its crown to an overseas bourse.