Dim 20 Mai 2012 23:16
Miner keen on IPO despite delay
Monday, May 21, 2012
China Nonferrous Mining Corp has delayed opening its retail book, but it will not shelve its HK$2.44-billion initial public offering.
A spokeswoman of the company said yesterday the management - now overseas promoting the float - has decided to extend the roadshow. But she refused to say exactly when CNMC would start taking retail subscriptions.
The company is a spin-off from state- owned China Nonferrous Metal Mining (Group) and operates four copper mines in Zambia. So far, it has attracted three cornerstone investors, including China Railway Construction Corp (1186).
It was originally scheduled to start bookbuilding today, though trading is still expected to commence on May 31.
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In other action, London-based jeweller Graff Diamonds Corp - seeking to raise up to HK$7.8 billion - commences its roadshow today.
Contolled by Laurence Graff and family, the jeweler is involved in sourcing, cutting, designing and retailing. It sold 5,147 jewelry and watch pieces worth an average of US$100,000 (HK$778,000) per piece to generate revenue of US$755.60 million in 2011. That was up 23 percent on the previous year. It 33 boutiques around the world, including one outlet in Hong Kong.
Around 60 percent of the total IPO proceeds will be go to company reorganization. That includes purchases of assets from Laurence Graff to secure the future supply chain.
The shares have been priced initially between HK$25 and HK$37, which represents a price-to-earnings ratio at 18 to 24 times - similar to Italian fashion house Prada (1913).
The retail book will open on May 28.
Graff has promised shareholders to pay dividends worth 20 percent of this year's profit. Trading starts on June 8.
The Hong Kong Exchanges and Clearing (0388), meanwhile, has published a guidance letter to warn IPO sponsors to be aware of applicant firms whose sales have risen sharply due to a rising number of distributors.
The sponsors have the responsibility to clearly explain the relationship between the applicant firms and their distributors, the HKEx said.
Source : http://www.thestandard.com.hk/news_deta ... 0521&fc=10