China National Building Material Co Ltd (CNBM), the country’s No. 2 cement maker, plans to issue up to 300 million shares and use more than US$623m of the sale proceeds to fund acquisitions and investments.
CNBM raised $342m in a share sale in Hong Kong in August. The firm has said it plans to increase its capacity by at least five-fold in three years to compete with global players expanding rapidly in a fast-growing market.
Despite Beijing’s efforts to cool overheated sectors of the economy, including property, the 2008 Olympics and the 2010 Shanghai World Expo are helping fuel strong demand for cement, attracting global players such Lafarge . (Reporting by Donny Kwok)