China Hongqiao seeks $2.2b IPO

Aluminum producer China Hongqiao will seek to raise up to US$2.2 billion in fresh capital from its upcoming IPO on the Hong Kong stock exchange, the Wall Street Journal reported. The Shandong-based firm will sell 1.74 billion shares at a target price range of between HK$7.10 and HK$9.90 (US$0.91-1.27). A further option to expand the stock offering by 15% would potentially net the firm US$2.5 billion, making it one of Hong Kong’s largest IPOs this quarter. The company said it will use the proceeds of the share offer to boost its production capacity. China Hongqiao’s revenue surged 71% year-on-year in the first nine months of 2010 to US$1.59 billion as the global market price of aluminum recovered from lows reached in 2009.