04 December 2006
West China Cement Limited joins AIM
The London Stock Exchange today welcomed West China Cement Limited, a producer of cement based in Shaanxi Province in the People’s Republic of China, to AIM, the Exchange’s global market for smaller growing companies.
West China Cement operates three cement production plants in Pucheng, the first of which has been operational since 1977 and now have a combined production capacity of 1.5 million tonnes per annum.
West China Cement’s admission brings the total number of AIM companies with operations in China to 43, of which 25 have joined the market so far this year.
The Company has raised a total of £22 million before expenses through the Placing of 20,952,381 Ordinary Shares of 10p each at 105p each principally with institutional investors. The Placing was more than twice oversubscribed.
Based on the above Placing Price per share, the market capitalisation of the Company on commencement of dealings will be approximately £66.8m.
The proceeds of the Placing will be used to fund the expansion of its cement production capacity and associated working capital requirements. The Company is increasing its existing capacity from 1.5 million tonnes per annum to 3.5 million tonnes per annum by the end of 2007
Mr Zhang Jimin, CEO, commented: “ We are thrilled that investors have responded so positively to our business and future strategy. The continued growth in demand for cement in Shaanxi Province and the restructuring of the cement industry coupled with today’s admission to AIM will enable the Company to further develop its cement production capacity and meet the current demand in the market.
“We are excited to be entering 2007 as an AIM quoted company and I am pleased to be welcoming new shareholders to the Company.”
The Company’s mnemonic is WCC and Insinger de Beaufort is acting as nominated adviser and lead broker to the Company. Blue Oak Capital Limited acted as joint broker to the placing.
