China Metal Recycling raises IPO projection

China Metal Recycling is set to raise 47% more money in its Hong Kong IPO than previously expected, the South China Morning Post reported, citing unnamed sources. China’s largest scrap-metal recycling company now plans to raise nearly HK$1.55 billion (USD$199.95 million) by selling 300 million new shares at HK$3.98 to HK$5.18 (US$0.51-0.67). The offer reportedly represents 9.6-12.5 times China Metal Recycling’s expected earnings for 2009. Speaking to investors three weeks ago, the company said it planned to raise no more than HK$1.05 billion (US$135.46 million) by selling the same number of new shares at a price of HK$2.20 to HK$3.50 (US$0.28-0.45) each. Recent increases in commodity prices have raised investor interest in the offering, analysts said.