Key investors to take more than 5pc stake ahead of HK$1.6b IPO
Listing candidate Shandong-based Qunxing Paper, the mainland's biggest decorative base paper maker which aims to raise HK$1.6 billion in a Hong Kong initial public offering later this month, has brought in Cheung Kong Holdings and New World Development as its strategic investors, according to sources close to the company.
The tie-ups between Li Ka-shing's Cheung Kong and Cheng Yiu-tong's New World come as the two conglomerates, which are heavily involved in construction works, see good growth potential in Qunxing, which makes papers for laminated boards.
The sources did not indicate the stakes that the two companies intend to take in Qunxing, but suggested that the two local tycoons along with a few other strategic investors will take more than 5 per cent of the stake.
Qunxing, which will start its roadshow today for institutional investors, will launch the retail tranche of the offer next week, and listing of the shares are expected at the end of the month.
Qunxing plans to boost production capacity by 88 per cent in 2009 to 320,000 tonnes, according to chairman Zhu Yuguo.
Hidili Industry International Development, a Sichuan-based coal and coking coal producer which hopes to raise as much as HK$4.1 billion, said its international roadshow had received orders for 10 times more shares than it was offering. The retail tranche, which accounts for 10 per cent of the share offering, will open for subscription from today until Thursday.
