Carlyle-backed Artgo Mining targets $130m HK IPO
Artgo Mining Holdings, a Chinese marble producer and distributor which is backed by The Carlyle Group, intends to raise up to HK$1.01 billion ($130 million) through an IPO in Hong Kong.
The company plans to issue 333 million shares at HK$2.43 - HK$3.03 apiece, according to a regulatory filing. It has attracted VMS Investment Group as a cornerstone investor, which will pay $20 million for around a 4.3% stake assuming a mid-point offer price of HK$2.73.
In July last year, Carlyle Asia Growth Partners IV and its affiliates made an investment of $40 million through the purchase of exchangeable notes, representing approximately 28% of the shareholdings in the company.
Upon completion of the IPO, Carlyle's stakes will be diluted to about 21%, based on the higher-end of the offer price of HK$3.03 per share.
Most of the net proceeds will be used to finance the construcution of Yongfeng Mine, a Jiangxi-based marble mine site which was acquired by Artgo in 2010. The remaining capital will be used for expansion of sales channel, acquisitions of high-end and premium marble resources and other corporate purposes.
In the nine months ended September, Artgo had revenue of RMB92.05 million ($15 millon) and booked a net profit of RMB9.32 million.
Bank of America Merrill Lynch is the sole sponsor and global coordinator of the listing, with Haitong International as the underwriter.
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