Metallurgical Corp of China to raise US$5.3b in IPO

SINGAPORE: Metallurgical Corp of China (MCC), one of the mainland's biggest engineering and construction firms, is raising up to US$5.3 billion in the world's second largest initial public offering for 2009, by listing in both Shanghai and Hong Kong markets.

According to market watchers, the grey market for MCC's debut on Monday could see an upside of 40 per cent because of huge demand and typically strong Chinese investor interest in IPOs.

MCC is offering 3.5 billion shares at 5.42 yuan apiece in Shanghai, which is at the top end of its indicative price range.

Subscription of the Shanghai tranche has seen more than US$234 billion now being held up.

In Hong Kong, 2.9 billion shares are being sold at HK$6.35 a share, which is in the middle of its indicative price range.

This will raise US$2.3 billion, making it the city's biggest IPO so far this year.

MCC said that the funds will be used towards the development of overseas projects including a copper mine project in Afghanistan, upgrading of equipment and additional working capital. Link...