China’s JL MAG to Price Hong Kong Shares at Bottom of Range
(Bloomberg) -- Shenzhen-listed JL MAG Rare-Earth Co. has priced its Hong Kong share offering at the bottom of a marketed range, according to people familiar with the matter.
The producer of magnetic rare-earth materials sold 125.5 million H-shares at HK$33.80 each, to raise about HK$4.24 billion ($544 million), the people said, asking not to be identified as the information is private. The shares were offered in a range that had a top at HK$40.30 per share. Trading is set to begin Jan. 14.
The company did not immediately reply to a phone call and an e-mail seeking comment.
JL MAG’s is the first offering to raise more than $500 million in Hong Kong this year as clampdowns by China on several sectors plus the prospect of rising interest rates cast a shadow over IPOs in the Asian financial hub. The slow start contrasts with the busy kickoff in 2021, when 16 companies priced near $8 billion in shares in the first month of the year, according to Bloomberg data, including video-streaming giant Kuaishou Technology.
Five cornerstone investors were expected to join JL MAG’s offering. China Chengtong, through its Mixed-ownership Reform Fund, was subscribing to units worth about $149 million, according to initial terms of the deal obtained by Bloomberg.
JL MAG’s mainland-listed shares have lost close to 14% since the start of the year, after nearly doubling in 2021. They’re still trading about 12 times higher than their IPO price in September 2018. Citic Securities Co. and BNP Paribas SA are joint sponsors of the Hong Kong deal.
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