Sinochem Corporation is pleased to announce that its wholly owned subsidiary, Sinochem Hong Kong (Group) Company Limited ("Sinochem HK"), has successfully placed 200,000,000 secondary shares, or about 3.44% of the existing issued ordinary shares of Sinochem Hong Kong Holdings Limited (Stock code: 297) at HK$1.83 per share on 6 February 2006. Purpose of this selldown is to restore the Company's 25% public float required by SEHK, following PotashCorp's exercise of option to acquire additional 10.01% shares.
The final pricing is at the top-end of the indicative marketing range (HK$1.73-$1.83) and a 10.0% premium to the 5-day VWAP prior to the exercise, reflecting investors’ confidence in the prospect of the Company. The placing was launched immediately after the Chinese New Year holiday, and order book was multiple times covered, attracting quality demand from over 50 institutional investors globally. Deutsche Bank acted as the Sole Bookrunner for this transaction.
Sinochem Hong Kong Holdings Limited is a leading fertilizer enterprise in China, offering a wide range of fertilizer and agricultural related products. It is one of the largest importers of fertilizer products in the PRC in terms of import volume and the largest distributor of imported fertilizer products in terms of sales volume in China. By the end of November 2005, the company has 14 branch offices and 1,036 sales centers, accounting for 76% of total sown lands in China. The company is also a major producer of phosphate-based fertilizer in China in terms of production output.