HONG KONG (XFN-ASIA) - China Molybdenum Co Ltd said it has set the price range for the initial public offering (IPO) in Hong Kong of its 1.0836 bln H shares at 5.0 hkd - 6.80 hkd per share.
Earlier, a market source said that the company had originally planned to sell the IPO shares at a price range of 5.0-6.40 hkd, but the strong interest generated by recent Chinese IPOs may have prompted the company to set a more flexible price range for its shares.
The company said that of the total shares on offer, 90 pct will be allocated to international and institutional investors, while the remaining 10 pct will be offered to retail investors.
The company will sell a total of 160 mln usd worth of shares to nine corporate investors in its upcoming IPO, including (nyse: LFC - news - people ), Citic Pacific Ltd, (nyse: C - news - people ), New World Development chairman Cheng Yu Tung, (other-otc: BKEAF.PK - news - people ) chairman David Li Kwok-po, Henderson Land Development chairman Lee Shau-kee, the Government of Singapore Investment Corp Pte Ltd, (other-otc: CHEUY.PK - news - people ) (Holdings) Ltd and its chairman Li Ka-shing.
The company said Cheung Kong and its chairman, Li, will each subscribe to shares worth 10 mln usd, while the seven other corporate investors will each acquire shares worth 20 mln usd.
The company also said it intends to use 20 pct of the IPO proceeds to expand its molybdenum production capabilities, 20 pct on the development of its own tungsten production, 40 pct for the acquisition of mines and mining rights in relation to mines with identified mining resources, 10 pct to repay bank loan and the remainder for working capital.
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