Lingyuan Steel plans share issue worth up to RMB 1.4 billion

On March 27, Liaoning Province-based Chinese steelmaker Lingyuan Iron and Steel Co. announced that it plans to issue approximately 37,837 non-public A shares aiming to raise up to RMB 1.4 billion ($225.1 million). Lingyuan Steel seeks to reduce the risk caused by its almost exclusive focus on the iron and steel business and thus to improve company’s stability. Capital raised from the share issue will be used to increase Lingyuan Steel’s stake in Aoyi New Energy Co., a company with interests in shale oil exploration, to 75 percent.