english.cri.cn
Feb 26,2008
China's Shandong Chenming Paper Holdings, a big paper producer, said on Tuesday it had received regulatory approval to issue and list up to 409.09 million shares in Hong Kong.
In a filing with the Shenzhen stock exchange, the company said it won approval from the China Securities Regulatory Commission on Monday to list on Hong Kong's main board.
It also said China's National Social Security Fund had won official approval to convert up to 40.91 million shares in Chenming into Hong Kong-listed shares after its Hong Kong initial public offering.
Chenming, which already has yuan-denominated A shares and foreign currency B shares listed in Shenzhen, said in March last year it would raise about HK$3 billion ($385 million) in a Hong Kong listing to fund a project producing wood pulp.
The company will offer as much as 25 percent of its expanded share capital in the form of Hong Kong-listed H shares, with a greenshoe, or overallotment, option of up to 15 percent of the offer.
Proceeds will go towards building what Chenming described as China's biggest integrated wood pulp factory, with annual production capacity of 700,000 tonnes and an associated forestry programme. Up to 20 percent of the proceeds will be used for the firm's operating capital.
Chenming had planned last year to sell a 30 percent stake in itself for about $625 million to a venture between Citigroup and UK-based CVC Capital Partners, but subsequently cancelled the plan, saying it had failed to reach agreement on strategy and board composition.
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