Prosperity heads for AIM

Prosperity heads for AIM
Published: 12 April 2006

Prosperity Minerals, controlled by David Wong, the Hong Kong-based entrepreneur, is thought to be at an advanced stage with its AIM flotation plans. Sources told The Times last night that Prosperity had already appointed a nominated adviser and broker and was hoping to start share-trading on London’s junior market by June.

A Prosperity spokesman admitted that a listing on the Alternative Investment Market “is something that we are actively considering”, but would not give further details.

A listing is likely to value Prosperity at more than UK£200m and would come after a “substantial” equity raising of as much as UK£100m, sources said. Prosperity’s two business units are cement manufacturing, based in China’s heavily populated Guangdong province, and iron ore trading. 

Prosperity’s Yingde Dragon Mountain cement plant produced 4Mt of cement last year and made a UK£14m net profit. Plans are under way to expand capacity to an estimated 6Mt. Prosperity also has a 25 per cent stake in the Prosperity Conch Cement venture, which analysts believe could make more than 5Mt annually when finished this year. Combined, the two Prosperity businesses could produce more than 11Mt of cement a year.