By Yongchang Chin
JL Mag Rare-Earth Co. Ltd. plans to raise 5.06 billion Hong Kong dollars (US$648.8 million) through a share offering in Hong Kong. The new-energy resource supplier will sell 125.5 million H-shares and market the shares in the price range of HK$33.80-HK$40.30 per share.
JL Mag Rare-Earth will use the proceeds to build production facilities in the city of Ningbo in China’s Zhejiang province, expected to begin operations there by 2023, as well as for research and development purposes.
It said some of the proceeds will be used to expand both its upstream and downstream operations for potential acquisitions.
Ganzhou, a China-based company, engages in the production and sale of rare-earth permanent magnetic materials with applications in automobiles, home appliances, wind power and consumer electronics.
The company, which is also listed in Shenzhen, is expected to finalize the offer price on January 7 and the shares will begin trading on the Hong Kong exchange on January 14.
BNP Paribas SA and Citic Securities Co. Ltd. is among the banks offering advice to JL Mag Rare-Earth.
Write to Yongchang Chin at [email protected]