Hongqiao launches $200m placement

Books were covered within a few hours of opening and the aluminium producer plans to use the funds raised to acquire upstream assets and pay off debt.
An aluminium smelter run by China Hongqiao
An aluminium smelter run by China Hongqiao

China Hongqiao Group, one of the country’s largest aluminium producers, raised $220 million in an accelerated share placement to pay down debt and acquire more upstream assets.

The Shandong province-based company on Thursday sold 275.9 million shares at HK$6.19 per share, a 9.1% discount to the September 3 close of HK$6.81, according to a term sheet seen by FinanceAsia.

It was the bottom of the initial range of HK$6.19 and HK$6.36 per unit, which represented a 6.6% to 9.1% discount to its September 3 close.

Books were covered a few hours after the China Hongqiao deal launched...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222