Jinduicheng Molybdenum to launch Shanghai IPO

Jinduicheng Molybdenum Co, Asia's largest producer of molybdenum, plans to launch on Friday a Shanghai IPO that could raise over $2 billion.

The firm will consult with investors between Friday and next Thursday on pricing the initial public offer, and take institutional subscriptions on April 8 and 9, it said on Thursday.

Retail subscriptions will be taken on April 9, and the company intends to list in Shanghai on April 17.

Jinduicheng Molybdenum plans to issue up to 538 million local-currency A shares, or 20 percent of its expanded capital.

It has said it needs 7.645 billion yuan ($1.1 billion) to expand production of molybdenum, used to toughen alloy steel, and upgrade technology. Any extra proceeds from the IPO would be used to supplement working capital.

($1=7.02 Yuan)