China Metallurgical Corp in $5 bln HK/Shanghai IPOs

Metallurgical Corp of China (MCC) plans to price the China portion of its upcoming $5 billion IPO at the top of an indicated range, a source said on Monday, as major Chinese firms race to raise cash amid concerns the regulator could soon slow new listings.

The company, which is preparing for a dual listing in Hong Kong and China, plans to price the China portion at 5.42 yuan ($0.79) per share, said the source, who was involved in the process and spoke on condition of anonymity.

The price is at the top of a previously indicated range of 5 yuan to 5.42 yuan per share.

The source disclosed the pricing plans even as analysts expressed surprise that such a decision could be made so early, as a final pricing announcement is not due until Sept. 10, according to a company filing with the Shanghai Stock Exchange.

A company spokesman was not immediately available for comment.

The dual listing could raise up to $5.3 billion, which would make it the world's second-largest IPO this year behind China State Construction Engineering Corp (601668.SS), which raised $7.3 billion in July. [ID:nSHA330047]

The China Securities Regulatory Commission lifted a 10-month ban on new IPOs in July, ending a prohibition aimed at propping up the country's two stock markets amid the global financial crisis.

China's main Shanghai bourse came roaring back this year, rising 87 percent between January and the end of July, but then slumped 21.8 percent in August, its second-biggest monthly loss in 15 years, fuelling speculation the regulator could either halt or slow down the number of new offerings in coming months.

A term sheet obtained by Reuters showed MCC plans to sell up to HK$19.55 billion ($2.5 billion) worth of H-shares in what could be Hong Kong's biggest initial public offering so far this year.

The term sheet also indicated MCC would issue 3.5 billion A-shares in Shanghai at the 5-5.42 yuan pricing range, raising up to 18.97 billion yuan ($2.78 billion).

The H share offering would see MCC, an engineering and construction firm, sell up to 2.871 billion H-shares at a price ranging from HK$6.16 to HK$6.81.

That would surpass the $1.3 billion IPO in May of China Zhongwang (1333.HK), Asia's largest maker of aluminium extrusion products. 

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.