China's Meilan Group eyes HK$1 bln in Hong Kong IPO in H2

Jiangsu Meilan Group, a Chinese producer of chlorine alkali and refrigerant products, is eying an initial public offering in Hong Kong in the second half of this year to raise as much as HK$1 billion (US$128 million) to replenish capital for capacity expansion, sources reported.

The Taizhou, Jiangsu province-based company had appointed BNP Paribas as the underwriter, according to sources, adding that the planned IPO would take place as early as the third quarter, depending on the market condition.

Meilan Group is engaged in the provision of fluororesin, fluoro-refrigerant, chlorine alkali, pesticide and thermoelectricity. It now has an ionic membrane chlorine alkali project under construction, with the initial investment up to RMB 500 million, which will more than double its capacity to 7,000,000 tons annually after commencing operation in June, 2009.