China PTA major Rongsheng Petchem raises $451m in Shenzhen IPO

01 November 2010 08:30  [Source: ICIS news]

SHANGHAI (ICIS)--Rongsheng Petrochemical, China’s leading purified terephthalic acid (PTA) and polyester producer, said on Monday it has raised yuan (CNY) 3.01bn ($451m) from its an initial public offering (IPO), and will begin trading on the Shenzhen Stock Exchange on 2 November. 

The company issued 56m shares at CNY53.80 each, with the generated proceeds more than triple its initial target of CNY949m, it said in a disclosure to the Shenzhen bourse.

The IPO proceeds would be used for working capital purposes, bank loan repayment and investment in future projects, the company said.

Rongsheng Petrochemical is hearquartered at Hangzhou in China's eastern province of Zhejiang.

The company has stakes in two PTA plants with capacities of 1.5m tonnes/year and 1.06m tonnes/year, which are owned by Yisheng Dahua and Yisheng Petrochemical, respectively, it said.

($1 = CNY6.68)

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By: Judith Wang
+65 6780 4359

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