China Infrastructure Construction Completes USD$10m financing
China Infrastructure Construction Corporation (CHNC), one of the major U.S.-listed providers of ready-mix concrete in Beijing, completed a USD$10m equity offering on October 16, 2009. "This financing was twice as large as originally planned, and will allow us to build on our strength as one of Beijing’s major ready-mix concrete suppliers," said CHNC Chairman and Founder Yang Rong. "We are pleased to complete our first-ever external fundraising in the U.S. capital markets, and will continue our expansion in North East China,"Chairman Yang added.
Led by institutional investors in Asia and North America, the CHNC privateplacement offering was increased to USD$10mfrom an originally planned USD$5m. The Company sold a total of approximately 2,564,103 shares of its common stock, no par value, at US$3.90 per share in the offering.
Immediately after the private placement there were approximately 11,118,397 shares of CHNC common stock outstanding. California-based Hunter Wise Securities, LLC served as the exclusive placement agent to CHNC.
CHNC through its PRC subsidiaries operates its ready-mix concrete facilities in China’s capital under the brand of Chengzhi Qianmao Concrete Co, Ltd. ("Beijing Concrete"). In its most recent fiscal year ended May 31, 2009 achieved after-tax net income of USD$10.5m. As a condition of the financing, CHNC agreed to net income targets of US$14m and US$18m, subject to certain adjustments, for each of the fiscal years ending May 31, 2010 and 2011 respectively. "Over the past six years, Beijing Concrete has enjoyed an average growth rate of over 30% annually," said Chairman Yang.
"CHNC has successfully expanded its operations from a single production facility in Beijing to additional production in the nearby city of Tangshan," continued Chairman Yang. Currently, the Company has two prime production facilities with one located in Beijing’s Nanhaizi area, on the west side of the Yizhuang Economic Development Zone south of Beijing, and the other is located in the Tangshan Development Zone, about two hundred kilometers east of Beijing. CHNC has a combined annual operating capacity from these two locations of 3Mm3. Published under Cement News
