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Liyuan Aluminum Plans 1.5B Yuan Private Placement
Edited by : AL CIRCLE
2 min read
Jinlin Liyuan Aluminum (002501), a maker of aluminum extrusion products, plans to issue a maximum of 72.8 million shares at 17.50 yuan per share in order to raise up to 1.5 billion yuan, reports nbd.com, citing a company filing.
Proceeds raised will be used to diversify the product mix, and implement its strategy of improving its high-end products.
According to the company, the maximum number of shares that can be purchased by a single investor is 20 million shares.
The company plans to invest a total of 1.89 billion yuan for the processing of rail car materials, and will invest the total amount raised into this project, which will produce aluminum materials used in the production of automobiles, rail cars, and large components.
The shortfall will be made up for by the company. The construction period is 24 months, with total construction cost of 1.69 billion yuan. Another 175 million yuan is required for working capital.
Once it is put into operation, the project is expected to generate net profit of 382 million yuan on revenue of 1.61 billion yuan, with an internal rate of return of 22.7 percent.
The aluminum materials production capacity of the company will be increased by 11,000 tons, per year while that of large components for rail cars will be raised by 400 units per year. The break-even period is 5.9 years.
The company had recorded 2010 net profit of 93.38 million yuan, while earnings in the first three quarters of 2011 hit 117 million yuan.
Proceeds raised will be used to diversify the product mix, and implement its strategy of improving its high-end products.
According to the company, the maximum number of shares that can be purchased by a single investor is 20 million shares.
The company plans to invest a total of 1.89 billion yuan for the processing of rail car materials, and will invest the total amount raised into this project, which will produce aluminum materials used in the production of automobiles, rail cars, and large components.
The shortfall will be made up for by the company. The construction period is 24 months, with total construction cost of 1.69 billion yuan. Another 175 million yuan is required for working capital.
Once it is put into operation, the project is expected to generate net profit of 382 million yuan on revenue of 1.61 billion yuan, with an internal rate of return of 22.7 percent.
The aluminum materials production capacity of the company will be increased by 11,000 tons, per year while that of large components for rail cars will be raised by 400 units per year. The break-even period is 5.9 years.
The company had recorded 2010 net profit of 93.38 million yuan, while earnings in the first three quarters of 2011 hit 117 million yuan.
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