Simsen rises 21pc in maiden trading
SHARES of Simsen Metals (Holdings), an associate of listed firm Tem Fat Hing Fung (Holdings), rose 21 per cent in their maiden trading yesterday.
The counter finished 22 cents higher at $1.27 from its issue price of $1.05. It traded in a range of $1.40 to $1.22 with 24 million shares changing hands, and was the fourth heaviest-traded stock.
Simsen Metals issued 52.5 million shares last month, raising $55 million to fund expansion in China, including a venture to make copper wire in Changshu.
Its public offer was almost 190 times subscribed.
The Shenzhen offshoot of Beijing's China National Non-ferrous Metals Corp (CNNC) and local billionaire Li Ka-shing also hold stakes in the company, which was founded in 1987 for trading in non-ferrous metals and ores, mainly copper, alumina and nickel, as well as scrap metals.
Meanwhile, CNNC's local subsidiary Oriental Metals Holdings plans to take up more than 25 per cent of a metal refinery in Zhuzhou, Hunan. Chairman Situ Huai said the company had not decided on the investment amount, which would depend on the result of an asset valuation of the Chinese refinery.
He added that the company intended to complete the deal within the year.
Cheung Kong (Holdings) has an 18 per cent stake in Oriental Metals through a 60 per cent owned joint venture with Tem Fat Hing Fung.
The venture, Cheung Kong Hing Fung Investment, was established last year to participate in technological enhancement projects for Chinese metal refineries.
It owns a 30 per cent interest in Oriental Metals and intends to seek a listing on the local market.
