China Grand Forestry Resources (CGFR) Ltd has offered 540 million shares as part of a plan to generate HK$1.3bn for the growth and acquisition of forest resources across China.
The listing on the Hong Kong Stock Exchange will see the shares valued between HK$2.40 (an 11.4% discount on the company’s share price as of August 31) and HK$2.60.
The net proceeds of the sale are to be used to allow CGFR to buy forests and forest resources in Chongqing, Yunnan, Quizhou, Hebei and Ganxu valued at HK$1.2bn, with a further HK$67m set aside for general working capital purposes.
Through its Beijing Wan Fu Chun Forest Resources Development Company Ltd subsidiary, CGFR has recently acquired the leasehold to 10ha in the Guangxi Zhuang Autonomous Region, with 660,000m³ of pine, fir and latifolate hardwood trees available on the land.
The acquisition, which cost CGFR RMB112m (£7.35m) is intended to develop the group’s diversified ecological forestry business and improve its assets and forest base.
