(Yicai Global) March 14 -- China Risun Group, one of the world's largest coke suppliers by volume, hopes to land HKD1.5 billion (USD200 million) when it lists in Hong Kong tomorrow.
Risun Group will offer 60 million shares at HKD2.8 (36 US cents) a pop, or 10 percent of all equity, the Beijing-based firm said in a statement today. The placement is already well oversubscribed, with investors signing up for 540 million shares.
The coking industry is not very concentrated right now, and Risun Group plans to expand its market share through mergers, acquisitions and business integration, Chief Executive Yang Xuegang said at a conference on Feb. 27, held to discuss the initial public offering and Risun's 2018 performance.
The firm plans to invest 30 percent of the money raised in the IPO, and 40 percent to repay existing domestic and offshore debts, today's statement added. A fifth will go toward improving facilities and environmental protection and the remainder will be kept as working capital.
Cornerstone investors in the IPOinclude Lido Trading, which subscribed to 1.26 percent of the shares, and Guangzhou Panyu Haiyi Real Estate Development, Wide Bridge, and Yinxing Holding, who all subscribed to 1.05 percent.
Editor: James Boynton