Asia Aluminium completes placement

JPMorgan leads its first straight equity deal from HK/China since merging with Chase.

Hong Kong aluminium manufacturer, Asia Aluminium raised HK$508 million ($66.7 million) from a top up placement yesterday (Tuesday). The company sold 330 million shares at HK$1.56, the top end of a marketed range of HK$1.51 to HK$1.56.

In line with the discounts attached to recent placements by Chalco and the Bank of China, the deal was priced at an 8.24% discount to the stock's HK$1.7 close. Books were open for about three-and-a-half before closing four times covered.

About 50 investors participated in the deal, with a geographical split, which saw 45% placed into Asia, 40% into Europe and 15% in the US.

The deal equated to about 33 days trading volume and represents 11% of the enlarged share capital. Pre-offering, Chairman and majority shareholder Kwong Wo Chung owned a 40.5% stake. The company was listed in 1998 and operates an aluminium plant in Guangzhou. About 70% of its output is sold to the construction sector including, for example, the cladding on Hong Kong's new IFC 2 building.

Proceeds are being used to fund capital expansion. On a one-year basis, the stock is up 150%.

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