Gansu Province-based Chinese steelmaker Jiuquan Steel Hongxing Iron and Steel Co., subsidiary of Jiuquan Steel Group, has announced its plan to launch a non-public offering of 2.172 billion shares at a price of RMB 3.83 ($0.609) per share, for an expected total sum of RMB 8.5 billion ($1.35 billion).
Of the total funds raised by the company, RMB 3.906 billion ($620.99 million) is expected to be provided to its wholly-owned subsidiary Jiuquan Steel Hongxing Yuzhong Iron and Steel Co. to support reconstruction work in Sichuan following the severe earthquake which hit the province on May 12, 2008. The remaining funds totaling RMB 4.594 billion ($730.37 million) are to be used to acquire 100 percent of shares in Tianfeng Stainless Steel Co., also owned by Jiuquan Steel Group. Tianfeng Stainless Steel Co. was founded in October 2010, with a total registered capital of RMB 10 million ($1.59 million). It is the largest stainless steel producer in the northwestern region of
China. The main products of the company include premium black steel coil, pickled coil and cold rolled coil, which are sold all over
China.