Sinosteel to launch Shanghai IPO by year-end

June 13, 2008

June 13th (China Knowledge Online) – Sinosteel Corp, one of the largest steelmakers in China, plans to launch an initial public offering in Shanghai by the end of this year, sources cited an unidentified senior executive of the company as saying.

The steel maker expects to raise RMB 10 billion to RMB 20 billion through the share offering, said the senior official on Thursday, adding that the company has established a holding company for the IPO.

It has appointed UBS AG as the sole underwriter to handle the deal, according to the official. However, there is no official comment or statement on the share offering plan.

The official said the proceeds from this share sale will not be used as investment fund to acquire Australia’s iron ore manufacturer Midwest Corp Ltd. Earlier reports said the Chinese metal trader raised its stake in Midwest close to 45%.

Detailed information such as share price and issue amount is not available yet.

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