China-based firm launches IPO

A CHINA-BASED aluminium producer has jumped into the red-hot initial public offering （IPO） market with a share sale that will kick off on Wednesday.

XinRen Aluminum Holdings may not carry the clout of heavyweights STX OSV and Mapletree Industrial Trust, but it says it offers a proxy to the growing demand for aluminium especially in China.

XinRen is offering 186 million new shares via placement to large institutional investors, while another 12 million will be available for smaller retail investors. The shares are priced at 55 cents apiece for the mainboard listing. There is also an over-allotment option of up to 30 million shares to cater for excess demand.

The firm aims to raise net proceeds of $96.1 million, which will go towards increasing the capacity of a fabrication plant in Jiangsu province, strategic investments and working capital.

The offer opens at 9am on Wednesday and closes at 12 noon next Monday. Trading is expected to kick off on next Wednesday.

XinRen's main business is in the smelting and sale of primary aluminium, as well as fabrication of the metal into sheets, coils and foils. The firm also trades aluminium products sourced from third parties. The majority of revenue comes from China.