As announced on November 23 by Inner Mongolia-based Chinese steelmaker Baotou Iron and Steel Co. (Baogang Group), the company’s non-public issuance of 1.65 billion new shares has received approval from the China Securities Regulatory Commission (CSRC). Chinese state-owned investment bank CITIC Securities is the underwriter of the share issuance.
Baogang Group had previously announced its decision to issue 1.63 billion shares for at least RMB 3.64 per share ($0.58 per share), expected to raise a total of RMB 6 billion ($961 million) from 10 specific investors. The funds raised will be used to acquire all outstanding shares inBaogang Group subsidiary Barrun Mining Co., and also to acquire mining rights for the western mine in the Bayan Obo iron ore mining district in Inner Mongolia.