Companies

China Sci-Tech says share sale gets good response

(Agencies)
Updated: 2010-05-19 13:33

China Sci-Tech Holdings Ltd said it received "very good" response for a $1 billion equity sale that will fund its plan to acquire copper mines in Peru and Australia, as a market rout forced rivals to cancel offerings.

"Investors' feedback to us has been very, very good, and our roadshow schedule is full," Chief Executive Officer Damon Barber told reporters at a briefing today in Hong Kong. "I don't think there's any problem with the share sale."

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A global equity market decline has forced Noranda Aluminum Holding Corp to cut its US initial public offering by 70 percent and led Strikeforce Mining & Resources Plc to delay a Hong Kong IPO. China Sci-Tech is seeking to become a copper producer, with annual output of 250,000 metric tons within three to five years, Barber said.

China Sci-Tech, changing the focus of its business from property and securities investment, may start to sell shares as early as June 1, according to presentation slides given at the briefing today.

The Peru project, in which China Sci-Tech will have a 70 percent stake, may cost $750 million to build, Barber said. The 42-year-old executive was previously head of metals and mining, Asia, with Deutsche Bank AG.

China Sci-Tech rose 4.4 percent to close at 35.5 Hong Kong cents today. The benchmark Hang Seng index gained 1.2 percent.

Concern over budget deficits in Europe and speculation China's government will tighten money supply have contributed to a 13 percent drop in the Hang Seng Index from its highest level in 2009 on Nov 16.