The Wall Street Journal
Chinalco Gets Nod for IPO
Edited by : AL CIRCLE
2 min read
Chinalco Mining Corp., a unit of Aluminum Corp. of China, ACH -1.46% on Thursday received Hong Kong regulatory approval for its plan to raise up to US$1 billion in a Hong Kong initial public offering, a person familiar with the situation said Friday.
The company plans to start gauging investor interest via a pre-marketing process that begins Monday, the person added.
Chinalco Mining, which controls the Toromocho copper project in Peru, is pressing ahead with the planned offering despite recent declines in both the stock market and copper prices. Hong Kong's benchmark Hang Seng Index has fallen 11% so far this month amid concerns about Europe's economic troubles, while copper prices on the London Metal Exchange are trading around $7,690 a metric ton, down 12% from a peak of $8,740 hit in early February.
In a reflection of the potential challenges facing Chinalco Mining's planned deal, rival Hong Kong-listed Chinese copper firm Jiangxi Copper Co.'s 600362.SH -1.38% shares are down 17% since the beginning of May, with the company trading at 6.6 times 2012 forecast earnings, according to FactSet.
The deal comes after Chinese copper miner China Nonferrous Mining Corp., which owns copper mines in Zambia, started taking orders from institutional investors Monday for its up to $313 million IPO in Hong Kong. London-based ultra high-end jeweler Graff Diamonds, which plans to sell shares in its $1 billion IPO in a range of 18-24 times forecast earnings, will start taking orders from investors Monday.
Chinalco Mining parent Chinalco has been aggressively investing in overseas mining resources to meet raising demand for raw materials in China. Its Hong Kong-listed aluminum arm Aluminum Corp of China Ltd., known as Chalco, intends to buy mining assets in Mongolia via its planned purchase of 60% of SouthGobi Resources Ltd. 1878.HK -1.22% That deal has faced delays after the Mineral Resources Authority of Mongolia called for SouthGobi's exploration and mining licenses to be suspended after Chalco announced the offer.
China International Capital Corp., HSBC Holdings HBC -2.98% PLC and Morgan Stanley MS -0.59% are handling Chinalco Mining's IPO, the person said.
The company plans to start gauging investor interest via a pre-marketing process that begins Monday, the person added.
Chinalco Mining, which controls the Toromocho copper project in Peru, is pressing ahead with the planned offering despite recent declines in both the stock market and copper prices. Hong Kong's benchmark Hang Seng Index has fallen 11% so far this month amid concerns about Europe's economic troubles, while copper prices on the London Metal Exchange are trading around $7,690 a metric ton, down 12% from a peak of $8,740 hit in early February.
In a reflection of the potential challenges facing Chinalco Mining's planned deal, rival Hong Kong-listed Chinese copper firm Jiangxi Copper Co.'s 600362.SH -1.38% shares are down 17% since the beginning of May, with the company trading at 6.6 times 2012 forecast earnings, according to FactSet.
The deal comes after Chinese copper miner China Nonferrous Mining Corp., which owns copper mines in Zambia, started taking orders from institutional investors Monday for its up to $313 million IPO in Hong Kong. London-based ultra high-end jeweler Graff Diamonds, which plans to sell shares in its $1 billion IPO in a range of 18-24 times forecast earnings, will start taking orders from investors Monday.
Chinalco Mining parent Chinalco has been aggressively investing in overseas mining resources to meet raising demand for raw materials in China. Its Hong Kong-listed aluminum arm Aluminum Corp of China Ltd., known as Chalco, intends to buy mining assets in Mongolia via its planned purchase of 60% of SouthGobi Resources Ltd. 1878.HK -1.22% That deal has faced delays after the Mineral Resources Authority of Mongolia called for SouthGobi's exploration and mining licenses to be suspended after Chalco announced the offer.
China International Capital Corp., HSBC Holdings HBC -2.98% PLC and Morgan Stanley MS -0.59% are handling Chinalco Mining's IPO, the person said.
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