China's Aluminum Giant's Unit Eyes to Go Public to Tap Motor Demand
Liao Shumin
DATE:  Jun 26 2018
/ SOURCE:  Yicai
China's Aluminum Giant's Unit Eyes to Go Public to Tap Motor Demand China's Aluminum Giant's Unit Eyes to Go Public to Tap Motor Demand

(Yicai Global) June 26 -- A unit of state-owned Aluminum Corporation of China, the world's second largest alumina producer, has filed its prospectus for an initial public offering.

Chinalco Rare Earth & Metals plans to issue 170 million shares to raise funds of CNY895 million (USD137 million) for projects such as a production base of magnetic components for motors, the China Securities Regulatory Commission reported on its website. The firm's plan is to make 1,500 high-efficiency and energy-saving motors every year.

Chinalco Rare Earth & Metals' registered capital is CNY1.4 billion, with total assets of CNY4.5 billion.  The firm gained CNY196 million in net income from its core business last year and made a profit of 12 percent, up 3 percentage points from the year before. The aluminum processor employs nearly 1,900 members of staff as of the end of last year.

In the event of the IPO, the parent company will reduce its direct and indirect holdings of the unit to 60.07 percent from 67.58 percent while maintaining its absolute controlling position.

Beijing-based Aluminum Corporation of China has 68 member firms and it operates in more than 20 regions globally.

Editor: Emmi Laine

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Keywords:   Chinalco,IPO,Aluminum Corporation of China,Aluminum,Motors,AUTOMOTIVE,CSRC