SHANGHAI Aug 26 China's stock regulator said on Wednesday it had approved an application by Metallurgical Corp of China (MCC) to launch an initial public offer in Shanghai aiming to raise around 16.85 billion yuan ($2.5 billion) in part to fund overseas projects.
MCC, which has an iron mining joint venture in Australia with CITIC Pacific (0267.HK), hopes to launch the A- and H-share IPOs simultaneously, although this cannot be assured due to uncertainties such as the need for Hong Kong regulatory approval of the H-share offering, it has said in the prospectus.
It plans to issue up to 3.5 billion A-shares denominated in the Chinese yuan CNY=CFXS for the listing on the Shanghai Stock Exchange and up to 2.61 billion H shares listed in Hong Kong. [ID:nSHA263168]
The approval suggests the China Securities Regulatory Commission is confident China's stock market can absorb the large new issue despite the market's recent volatility.
China's main stock index .SSEC closed up 1.78 percent on Wednesday as the market struggled to stabilise following a two-week, 20-percent slide earlier in the month that ended this year's heated 90-percent rally. ($1=6.83 yuan) (Reporting by Lu Jianxin and Jacqueline Wong)