Beijing-based Chinese pipe producer Xinxing Ductile
Iron Pipes Co. has announced that it plans to issue 512 million shares at
RMB 6.25 ($1.02) per share in order to raise a total of RMB 3.2 billion ($525
million). The raised money will be used to finance the second phase of the
special steel project of Xinxing Ductile Iron Pipes's Xinjiang subsidiary. The
overall special steel project in question, located in Hejing industrial park in
Bazhou, Xinjiang, will add an annual output of 2 million mt of special steel.
Meanwhile, Xinxing Ductile Iron Pipes' major shareholder Xinxing Cathay International Group has decided to buy 128 million of the abovementioned shares at RMB 6.25 ($1.02) per share, which is higher than the share transaction price of RMB 5.93 ($0.97) at the close of business on November 19,with the 128 million shares thus worth a total of RMB 800 million ($131 million).