China Energy to raise S$207 mln in Singapore IPO
Wed Dec 13, 2006 3:33am ETSINGAPORE, Dec 13 (Reuters) - China-based chemicals producer China Energy Ltd. has priced its planned Singapore initial public offering at S$0.83 a share, at the top of the indicative range, the company said in its prospectus on Wednesday.
This means the firm would raise about S$207 million ($134.5 million) in the IPO.
China Energy has also increased its total offering size to 220 million new shares and 29 million vendor shares because of strong demand for the IPO, a banker involved in the deal said.
The revised total offering would be equal to 20 percent of the firm's enlarged share capital and would value the company at more than S$1 billion.
Initially, the company had offered to sell 16 percent of its enlarged share capital, and had set an indicative range of S$0.54 to S$0.83 a share for the IPO, sources said.
ABN AMRO Rothschild (AAH.AS: Quote, Profile , Research) is the lead manager for the IPO.
China Energy Ltd. said that it is the country's largest producer of Di-Methyl-Ether (DME), an alternative fuel to liquefied petroleum gas. It produces DME and methanol in Linyi, in China's Shandong province.
The shares will start trading on Dec. 21.
The company plans to use the IPO proceeds to acquire an additional production facility, to boost existing capacity and for working capital needs.
It plans to increase its DME production capacity to 600,000 tonnes per year by the first half of 2007, from 150,000 tonnes per year currently following an acquisition.
