China’s Giant Molybdenum Producer Plans Hong Kong IPO

The Luoyang Luanchuan Molybdenum Group is planning to file an IPO application with the Hong Kong Stock Exchange to raise US$200 million next month, market sources told the South China Morning Post. Expected to be launched late this year or early next year, the IPO of the State-owned enterprise will be arranged by Morgan Stanley. Based in Henan Province, Luoyang Luanchuan has the world’s largest molybdenum deposits totalling 260,000 tons. And by providing the world’s fourth-largest steelmaker, South Korea’s POSCO, with 9,000 tons over the next two years, Luoyang Luanchuan will earn US$300 million.The white metal is used to make alloys for strengthening the mixtures of metals that are typically more durable than pure metals like stainless steel.