China Metal International Holdings, whose shares will start trading on the Hong Kong stock exchange today, said it might conduct a secondary offering after two years to raise funds for capacity expansion.
The metal-casting maker, which operates factories in Tianjin and Suzhou, raised more than $334 million by issuing 250 million shares at $1.42 each. The retail tranche of the IPO was 22.1 times subscribed, while the placing tranche was about 3.5 times covered.
Chairman Ho Ming-shiann said the listing provided a platform to raise capital in the future. 'We may issue new shares in 2006 once our new capacity is fully utilised,' he said yesterday.
The company has said proceeds will be used to expand annual production capacity to 180,000 tonnes from 120,000 tonnes.
It is in talks with one of its clients to build another factory in Tianjin, which would produce 60,000 tonnes of metal castings annually when it becomes operational in the first quarter of 2006.
Mr Ho said the new production plant would be used quickly, as clients had already booked the future capacity.
