Baker & McKenzie advised Aluminum Corporation of China (“Chalco”) on its recent 550 million new shares placement which raised HK$3.11 billion. This is the largest H-share secondary offering and was approximately four times subscribed.
The proceeds will fund the third phase of expansion at Chalco’s alumina refinery in Shanxi province, and will also be used as working capital and to fund possible acquisitions. Chalco is the only producer of alumina in China and the country’s largest producer of metal.
Securities Partner, C.Y. Leung led the Baker & McKenzie team, and was supported by Associates Yvonne Kwok and PH Chik.
Commenting on Baker & McKenzie’s role, C.Y. Leung said – “Having advised Chalco on its dual listing in 2001, we are delighted to have assisted with the current secondary offering, which is the largest placement by a Chinese incorporated company listed in Hong Kong. Baker & McKenzie’s involvement in this largest placement fortifies our leading position in the area of PRC and Hong Kong listings and fund raisings. We are at the forefront to build upon our leading position as the securities market opens up to the anticipated placements and IPOs of leading Chinese companies.”