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China Taigang to issue shares, raise up to $537 mln

Tue Jul 22, 2008 8:31pm EDT

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SHANGHAI, July 23 (Reuters) - Shanxi Taigang Stainless Steel Co (000825.SZ), China's largest stainless steel mill, said on Wednesday it would issue new domestic A shares to raise up to 3.66 billion yuan ($536.6 million) for a rolling mill project.

Taigang Stainless said in a statement that it would make a public offering of up to 350 million shares at 10.46 yuan per share. Its shares closed on Tuesday at 10.65 yuan.

The proceeds of the fund-raising will be used in the construction of a 1.5 million tonne stainless steel rolling mill, which has a total cost of 7.68 billion yuan and in which the company had already invested 4.56 billion yuan as of the end of last year.

Any proceeds not spent on the project would be used to repay bank loans and improve its financial structure, the company said. ($1=6.821 yuan) (Reporting by Edmund Klamann; editing by Jonathan Hopfner)



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