Alcha Aluminum awaits CSRC's IPO approval

Jiangsu Alcha Aluminum Co. Ltd., located in eastern Jiangsu Province's city of Changshu, plans to launch an initial public offering of 42.5 million shares that will increase total share capital to 170 million shares, according to a recent company announcement. "The IPO proposal will be discussed at a China Securities Regulatory Commission meeting today. The company has not yet received any indication from the CSRC regarding proposal approval," Alcha Aluminum official, Lu Yun, said today. According to the announcement, Alcha Aluminum plans to use the funds raised through the IPO to finance both a 50,000-ton aluminum alloy foil facility and a 30,000-ton PS base plate facility, which require a total investment of RMB 264.76 million ($34.98 million). Alcha Aluminum was incorporated in April 2004 and specializes in the production of aluminum foil used in air-conditioning units, automobiles, printers and the decoration and packaging industry. The company is currently controlled by Changshu Aluminum Foil Factory, which holds a 52 percent stake. Alcha Aluminum has an annual production capacity of 100,000 tons of aluminum coil strip, 80,000 tons of aluminum foil and 40,000 tons of hydrophilic coated aluminum foil. Alcha Aluminum's operating profits reached RMB 1.40 billion ($184.72 million) in 2006, with net profits amounting to RMB 39.63 million ($5.24 million).