Metallurgical Corp of China looks set to raise nearly 50 per cent more from its mainland initial public offering than planned.
The resources and construction unit of state-owned China Metallurgical Group Corp is likely to price its initial public offering at about seven yuan (HK$7.94) per share, raising 24.5 billion yuan by floating 3.5 billion A shares, a fund manager who took part in the company's price consultations said.
Metallurgical initially aimed to raise 16.8 billion yuan on the Shanghai Stock Exchange and US$2.3 billion in Hong Kong in a dual listing.
The dual listing is tipped to become the world's second-largest initial offering this year, trailing only China State Construction Engineering's A-share issue of US$7.3 billion in July.
Metallurgical will set the price range on September 8. It has allocated 1.4 billion shares to institutional investors in an offline subscription system and will sell the remaining 2.1 billion shares to the public in an online bidding system on September 9.
Citic Securities, the underwriter of the A-share offering, said in a report a reasonable price range should be between 6.07 yuan and 7.57 yuan.
