Gansu Province-based Chinese steelmaker Hongxing Iron and Steel Co., a subsidiary of Gansu-based Jiuquan Iron and Steel Group (JISCO), has announced that it has raised funds worth RMB 8.058 billion ($1.28 billion) by issuing 2.172 billion shares to nine investment institutions at a price of RMB 3.71 per share.
The largest buyer Huarong Securities Co. offered RMB 2.417 billion ($385 million) to purchase 651.6 million shares. The shares held by the buyers can circulate in the market from January 25, 2014. Following Hongxing Steel’s share issue, the total stake in Hongxing Steel owned by JISCO has decreased form 83.74 percent to 54.70 percent.The purposes for which the raised funds will be used include the development of products of high quality, such as high value-added high-strength rebar and stainless steel products.