West China Cement
West China Cement is a producer and distributor of cement.
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West China Cement`s Hong Kong IPO values company at US$895 million
Cement manufacturer West China Cement (LON:WCC) has announced offer price and the results of the allocations for the Hong public offer. The offer price has been set at HK$1.69 per share, implying a market capitalisation of HK$6,955 million, or US$895 million.
Based on this price, the total net proceeds received by the company from the global offer will amount to HK$1,280 million or US$164 million.
About 44% of the proceeds will be used to fund capacity expansion, including HK323 million equalling US$41.5 million to install residual heat recovery systems, half of which is expected to be incurred in 2010 and the remaining half in 2011. Another HK$239 million, or US$31 million, will be used for future acquisitions, including the acquisition of Jianghua Cement.
West China will repay its loans and related interests with 46% of the proceeds, which will include covering the ICBCI facility of US$50 million and US$25 million of the ICBC facility promptly after listing.
The balance of 10% will be used for working capital purposes.
Due to what the company said was very significant oversubscription in the Hong Kong offer, more than 329 million shares were reallocated from the international placing to the Hong Kong public offer, taking the number of shares available under the Hong Kong offer to 411.5 million representing 50% of the total number of the shares initially available under the global offering.
“We are delighted by the investor support and interest we have had during the Global Offering. Today's announcement represents the start of a new and exciting stage in the Company's development. Our leading position in the Shaanxi market, along with our strong financial track record gives us confidence for the future. We look forward to keeping our both new and existing shareholders updated on our progress in implementing our growth strategy,” said Chairman of West China Cement Zhang Jimin.
Immediately following the completion of the global offering, approximately 49.12% of the total share capital will be held by the public.
There has been an over-allocation of 123 million Shares in the international placing. Over allotment option has not yet been exercised.
The company will to delist from AIM on 23 August, when it will start trading in Hong Kong.
Other West China Cement news
- West China Cement acquires Xiushan Cement for RMB 180 million
2010-01-06 - Two major contract wins for West China Cement
2009-06-10 - West China Cement announce record sales and approval for two new plants in earthquake reconstruction area
2009-04-01 - West China Cement fires 3rd kiln and sees capacity reached in Q2
2009-02-05
