Chinese Mining Firm Anning Refiles For Shenzhen IPO, Seeks To Raise $158m

Chinese iron ore mining company Sichuan Anning Iron and Titanium Co., Ltd has refiled for its initial public offering (IPO) at the Shenzhen stock exchange targeting to raise about 1.1 billion yuan ($158 million), per its filing.

Anning intends to sell up to 40.6 million common shares at 27.47 yuan ($3.9) apiece. 

The Panzhihua-based company has filed for four applications since 2017 and got approval in December 2019, according to the China Securities Regulatory Commission. 

Anning, set up in 1994 and located in Southwest China’s Sichuan province, is into green vanadium & titanium resources mining. It offers raw materials to cater to steel, heavy rail, vanadium battery, titanium product industries. 

According to its prospectus, the company’s top three clients are state-owned Panzhihua Iron & Steel Group, SZ-listed Lomon Billions’ subsidiary Lomon Corporation, and Xicang Mining. 

Besides, its titanium material recorded more than 10 per cent market share in the country.

As of 2019, Anning generated an aggregate of 1.37 billion yuan ($194 million) in annual revenue and 519 million yuan ($73 million) in net profit. 

Following the IPO, Yangyong Luo will be the actual controller in Anning with a combined of 76.31 per cent stake, which comprise 42.39 per cent indirect stake in the controlling shareholder Zidong Investment and 33.92 per cent direct ownership. 

It will use the IPO proceeds to finance the projects of vanadium titano-magnetite and to fuel working capital needs. 

SZ-listed Huaxi Securities is the lead underwriter of the deal.