WISCO to issue common shares to raise RMB 8.7 billion

China's third largest steelmaker Wuhan Iron and Steel Co., Ltd (WISCO), a subsidiary of Wuhan Iron and Steel Corporation, announced on March 23 that it will issue 2.351 billion common shares in order to raise funds, principally for the acquisition of its parent company's 77.6 percent stake in Echeng Iron and Steel Co. (Echeng Steel). WISCO expects to issue these shares at the price of RMB 3.70 ($0.56) per share, raising RMB 8.7 billion ($1.3 billion) in total.
 
Of the funds raised, WISCO plans to use RMB 5.919 billion ($0.9 billion) to acquire Wuhan Iron and Steel Corporation's shareholding in Echeng Steel and 100 percent of the corporation's powder metallurgy division, with the remaining funds to be used to supplement WISCO's working capital.