China Metal Recycling Eyes HK$1.55 bln From Hong Kong IPO

HONG KONG, June 9 -- China Metal Recycling (Holdings), the biggest scrap metal recycling company by revenue in mainland China, is seeking to raise up to HK$1.55 billion from an initial public offering (IPO) on the Hong Kong Stock Exchange (HKEx), sources reported.

    China Metal Recycling plans to issue 300 million shares at a price ranging from HK$3.98 to HK$5.18 apiece.

    The Guangzhou-based company said in a statement that subscriptions will open from Jun. 10 to Jun. 15, and its shares will start trading on Jun. 22.

    The company, with recycling and processing facilities in Guangdong, Jiangsu and Hong Kong, plans to invest HK$134 million this year in building new recycling plants. The spending is expected to boost the company's annual output to 3.6 million tons from the current 1.6 million tons.

    China Metal Recycling, which recycles both ferrous and nonferrous metals such as iron, steel and copper, recorded a net profit of HK$294.4 million last year, more than double that of a year ago.

    UBS and China Merchants Securities are the underwriters for the offering.

    (Source: China Knowledge)