China’s Tongkun Group eyes $463m IPO to fund expansion

23 March 2011 07:15  [Source: ICIS news]

SHANGHAI (ICIS)--China’s major polyester filament yarn producer Tongkun Group plans to raise yuan (CNY) 3.04bn ($464.1m) through an initial public offering (IPO) of 120m shares, a source close to the deal said on Wednesday.

Proceeds from the IPO will be used to fund the ongoing construction of its new 800,000 tonne/year purified terephthalic acid (PTA) plant at the Zhapu Economic Development Zone in Zhejiang province, said a source from brokerage firm Guosen Securities, the lead underwriter of the IPO.

However, the final value of the IPO cannot be confirmed until the issue price is fixed, the source said.

The shares will be listed on the Shanghai Stock Exchange, but there is no definite timeline for the debut of the IPO, the source said.

The China Securities Regulatory Commission (CSRC) approved the IPO application from Tongkun on Monday, according to a statement on its website.

The Tongkun Group is located in China’s eastern Zhejiang province and has a polyester filament yarn capacity of 1.4m tonnes/year, the company said.

($1 = CNY6.55)

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By: Judith Wang
+65 6780 4359

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