Aluminum Corporation of China Ltd (Chalco) , the country's largest aluminium producer, plans to issue new shares to raise up to 8 billion yuan ($1.3 billion) to fund development and expansion projects.
Chalco will apply to the China Securities Regulatory Commission (CSRC) within six months for the issue of not more than 1.25 billion additional Shanghai-listed A shares, the company said in a filing to the Hong Kong Stock Exchange.
The shares, which buyers will not be able to sell for 12 months, will be issued to no more than 10 target subscribers at a price to be determined after the CSRC approval, it said.
Chalco said the issue would raise not more than 8 billion yuan, and the money would be used to fund the Xing Xian alumina project and Zhongzhou Ore-dressing Bayer Process expansion construction project and serve as working capital.
For company statement please read: here
Chalco's shares ended up 1.5 percent at 7.34 yuan in Shanghai on Thursday and closed unchanged in Hong Kong.
The Hong Kong shares lost more than half of their value last year, underperforming a 20 percent fall on the blue chip Hang Seng Index.
A supply glut on the back of a deepening European debt crisis and global economic slowdown have hurt demand and prices for the metal, sending many aluminium producers into the red and triggering a round of production cuts, including at top U.S. maker Alcoa.
Chalco estimated last month that its profits for 2011 had dropped more than 50 percent from the previous year due to a sharp fall in the price of aluminium in the fourth quarter, and to increased production costs and the effects of the European debt crisis.
豫公网安备41010502003434号