By Hao Zhou (chinadaily.com.cn)
Updated: 2007-12-06 16:11

A total of 95 percent of Sinosteel Corporation's assets will be dual listed, offering A-shares first and H-shares sometime in the first half of next year, according to the Shanghai Securities News.

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After inking a cooperative pact yesterday with Baosteel, the largest steelmaker in China, Huang Tianwen, Sinosteel president, revealed that the State Council has approved Sinosteel's entrance into the capital market.

However, the scheme will still need to go through the State-owned Assets Supervision and Administration Commission, along with many other specific procedures such as establishing a shareholding company, before the matter is settled.

An insider from Sinosteel, China's largest raw materials and technical services provider, suggested the group will use 95 percent of its assets to set up a shareholding firm, and then go public in Shanghai first and Hong Kong second, following China Railway's dual listing model.

Sinosteel had earlier disclosed it has appointed Bank of China International, JPMorgan Chase, and UBS as its underwriters, hoping to raise a total US$1.5 billion.

Sinosteel's sales revenue amounted to 61 billion yuan (US$8.26 billion), almost triple that of 2003, and its profits totaled 900 million yuan. The group expects sales revenue to reach 80 billion yuan next year and 100 billion yuan in 2010.

However, early last month, Huang expressed worries over China's steel industry. Soaring iron ore prices and shipping costs, together with a potential structural adjustment of the Chinese steel industry next year, may cause some difficulties.