Chalco says plans $1.4 bln share sale in China

By Wenwen Meng | January 30 2011 11:45 AM

Aluminum Corporation of China Ltd (Chalco), the country's largest producer of the light weight metal, said it plans to raise up to 9 billion yuan ($1.37 billion) from a private placement of new shares to be listed in Shanghai.

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Chalco said in a filing on Sunday that the proceeds from new A-shares will be used to fund the Xing Xian alumina project and other purposes.

The company said it will apply to the China Securities Regulatory Commission for the issue of the new shares, which will represent about 6.88 percent of the total issued share capital as enlarged by the A share issue.

The share sale is also subject to shareholder approvals, it added.

Chalco's Shanghai-listed A shares closed down 0.95 percent to 10.44 yuan on Friday and its Hong Kong traded H shares fell 1.2 percent to HK$7.68.

The company said it's proposing that shares will be issued to no more than ten investors, mainly institutional investors.

Chalco said earlier this month that it expected to turn a net profit for 2010 after recording a net loss of 4.646 billion yuan ($690 million) in 2009 on an increase of sales volume and prices of aluminium.

($1=6.581 Yuan)

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