China Molybdenum to raise $575m in share offer

China Molybdenum Co Ltd, a major Chinese producer of tungsten and molybdenum, aims to raise 3.646 billion yuan ($575 million) in a share offer on the Shanghai Stock Exchange, the company said in a share issue prospectus on Monday.

China Molybdenum plans to issue up to 542 million A-shares denominated in yuan, or up to 10 percent of its expanded share capital, to build new projects, it said in the prospectus published on the exchange's website, www.sse.com.cn.

Book building will start on Tuesday and an issue price will be decided on September 20, it said.

China Molybdenum recorded a net profit attributable to shareholders of 720.7 million yuan in the first half of this year, it said. Its profit rose 9.6 percent in 2011 to 1.12 billion yuan, it said, but gave no breakdown for the first half of 2011.

China Molybdenum's Hong Kong shares closed at HK$2.93 ($38 cents) on Friday. They are down 11.7 percent so far this year.

The benchmark Chinese stock index, the Shanghai Composite Index, is down 3.3 percent so far this year, though it jumped 3.7 percent on Friday.

The company will become the latest Chinese firm to tap mainland Chinese investors for funds after initially going public in Hong Kong.

Essence Securities and BOC International (China) Ltd have been appointed as the share offer's underwriters, while UBS and CCB International have been appointed financial advisers.