Luoyang Luanchuan Molybdenum Group, which owns the largest molybdenum deposits in the world, plans to launch its US$600 million initial public offering in Hong Kong next month, market sources said.
The firm, based in Chengguan, Henan province, owns deposits that hold 260,000 tonnes of molybdenum. The white metal is used in making alloys, or mixtures of metals that are more durable than individual metals, such as stainless steel.
Luoyang Luanchuan also has a mining and concentration capability, where ore is prepared for smelting, of 10,000 tonnes per year.
Morgan Stanley and UBS will arrange the company's share sale.
Analysts said share offerings by natural resources companies would attract investors as the price of commodities hit record highs on demand from developing economies such as India and China.
Shares of Hunan Nonferrous Metals Corp, the mainland's largest zinc and tungsten producer, have doubled since it raised US$228 million in a Hong Kong float in March last year. They trade at 24 times forecast earnings for this year.