SHANGHAI, Jul 05, 2010--Aluminum Corp. of China Ltd. （2600.HK）， the largest aluminium producer in China by output, said Tuesday it will push back the deadline for its planned CNY10 billion （US$1.5 billion） share placement by 12 months because of poor market conditions.
Chalco said in July last year it planned to raise the money by placing up to 1 billion yuan-denominated A shares to no more than 10 institutional investors at a discount to its stock price. China's securities regulator approved the deal in April this year.
However, the aluminium producer's stock price has dropped nearly 30% since the announcement of the private placement and based on Monday's closing price of CNY8.59, it could raise up to CNY8.59 billion, a 16% discount to its original target.
The current deadline expires Aug. 23 and the extension will be subject to shareholders' approval, the company said.
Weak investor appetite has forced some companies to cancel or delay fund-raising plans, while China's banks are planning to raise around $70 billion in coming months to replenish their capital.
China's stock market has dropped 28% since the start of this year because of concerns over a double dip in the Chinese economy amid the euro zone's sovereign-debt crisis.
Chalco has said the proceeds from the stock sale will finance its expansion plans and complement its working capital.
豫公网安备41010502003434号