On December 19, Beijing-based Chinese steelmaker Shougang Iron and Steel Co. announced that its net asset value is expected to increase by an estimated RMB 3.4 billion ($0.55 billion) due to its holding company BAIC Motor Corporation Ltd being listed at Hong Kong Stock Exchange.
Shougang Steel holds 1.028 billion shares in BAIC Motor Corporation, which is issuing 123 million H shares at Hong Kong Stock Exchange on December 19 at HKD 8.9 ($1.15) per share. Up to now, Shougang Steel has held a 16.12 percent stake in BAIC Motor Corporation.
Based on the issue price per share, Shougang Steel's shares in BAIC Motor Corporation are valued at RMB 7.218 billion ($1.18 billion). After the listing, Shougang Steel's shares in BAIC Motor Corporation are expected to increase in value by around RMB 3.4 billion.