NON-FERROUS metals and ores trader Simsen Metals (Holdings) is to offer 52.5 million new shares at $1.05 each for public subscription, raising $55 million.
The issue, representing 25 per cent of the enlarged share capital, will carry a price-earnings multiple of 8.6 on a fully diluted basis.
The public offering follows a share placement of a 7.5 per cent stake in Simsen to a company beneficially owned by tycoon Li Ka-shing.
Part of the funds raised will be used to pay for its expansion in China, including a venture to make copper wire in Changshu.
The group, founded in 1987, trades non-ferrous metals and ores, mainly copper, alumina and nickel, as well as scrap metals. It also processes scrap.
The new issue, jointly sponsored by Goldwyn Capital and CEF Capital, will open tomorrow for public subscription.
Simsen is forecasting a profit of no less than $25.5 million for the year ending last December 31.