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HONG KONG, Jan 24 (Reuters) - Chinalco Mining Corp International, a unit of the country's top aluminium group Aluminum Corporation of China (Chinalco), is set to price its Hong Kong IPO at HK$1.75 per share, near the mid-point of an indicative range, sources with knowledge of the deal said on Thursday.
The company, which is developing a copper-molybdenum-silver mine in central Peru, offered 1.76 billion new shares, putting the total deal at HK$3.1 billion ($400 million). It had marketed the initial public offering at HK$1.52 to HK$1.91 per share.
Underwriters have recommended that the company price the IPO at HK$1.75 per share, but the final decision will be made at a Chinalco board meeting in Beijing, said the sources, who were not authorised to speak publicly on the matter. The stock is set to start trading on the Hong Kong stock exchange on Jan. 31.
Officials at Chinalco Mining Corp International were not immediately available for comment.
Five cornerstone investors agreed to buy a combined $240 million of shares in the IPO, securing demand for more than half of the deal, according to the IPO prospectus. The investors were something of a who's-who of the commodities world, including trader Trafigura, a unit of the Louis Dreyfus Commodities group and mining company Rio Tinto plc.
BNP Paribas and Morgan Stanley were hired as joint global coordinators, with CCB International, China International Capital Corp (CICC), HSBC and Standard Chartered Plc also acting as joint bookrunners for the IPO.