Mar. 9, 2012 (China Knowledge) - Aluminum Corp of China Ltd (Chalco)<601600
>, the top aluminum maker in the country, has announced plans to raise up to RMB 8 billion via a private placement, sources reported.
In a statement, the Chinese aluminum giant said it will apply to the China Securities Regulatory Commission
within six months to issue not more than 1.25 billion A shares, accounting for 8.46% of the enlarges share capital.
The to-be-issued shares, which buyers will not be able to sell for 12 months, will be issued to no more than 10 target subscribers, said Chalco.
Proceeds from the offering will be used to fund an alumina project and a pre-dressing process project, as well as replenish working capital.
Last month, Chalco projected that its profit for 2011 might have dropped over 50% due to declined aluminum prices in the fourth quarter and increased production costs, as well as the effects of the European debt crisis, said a person familiar with the matter.
General Manager Xiong Weiping has said the company reaped more than RMB 2.5 billion in profits and over RMB 230 billion in operating revenue last year.