October 12, 2008

Angang Steel raises USD 2.3 Billion in share sale

It is reported that Anshan, Liaoning province based Angang Steel has raised CNY 17 billion (USD 2.3 billion) from a sale of shares to fund the construction of a steel mill. Anshan informed Hong Kong stock exchange that investors bought 1.11 billion shares at CNY 15.40 a piece.

In addition, Angang Steel aims to raise a further USD 400 million in a Hong Kong share sale. The steelmaker plans to sell 195.8 million shares at HKD 15.91 each and the China Securities Regulatory Commission has approved the sale.

Anshan plans to use the funds to help pay for a CNY 22.6 billion steel mill. The proposed plant at Yingkou Port will increase production capacity 31%. It will produce as much as 5 million tons of steel a year and 4.88 million tons of steel products, including heavy plates, used in shipbuilding and cars and cold rolled sheets, used in appliances and cars.