Asia Cement Corp is ready to invest some HK$400m to acquire cement companies based in China, the Commercial Times reported, citing a company official.
The funds will come from proceeds of an initial public offering by unit Asia Cement (China) Holdings (743.HK) in Hong Kong, the official said.
The report said Asia Cement (China) is selling 375m shares, at HK$4.95 each, and will start trading on May 20. Including a greenshoe option of 56.25m shares, the IPO is expected to raise HK$2.13bn.
The official said some 50 per cent of the IPO proceeds will help expand the company’s cement mills in Sichuan and Jiangxi provinces. The share sale will reduce Asia Cement’s stake in the China unit to 70.75 per cent from 94.33 per cent with no greenshoe.