JL Mag Rare-Earth Co. Ltd. plans to raise 5.06 billion Hong Kong dollars (US$648.8 million) through a share offering in Hong Kong. The new-energy resource supplier will sell 125.5 million H-shares and will be marketing the shares in a price range of HK$33.80-HK$40.30 a share.
JL Mag Rare-Earth will use the proceeds to construct production facilities in Ningbo city in China's Zhejiang province, expecting to commence operations there by 2023, as well as for research and development purposes.
It added that some of the proceeds will be used for potential acquisitions to expand both its upstream and downstream operations.
The Ganzhou, China-based company engages in the production and sales of rare-earth permanent magnetic materials, with applications in automobiles, home appliances, wind power and consumer electronics.
The company, which is also listed in Shenzhen, expects to finalize the offer price on Jan. 7, and expects shares to begin trading on the Hong Kong Exchange from Jan. 14.
BNP Paribas S.A. and Citic Securities Co. Ltd. are among banks advising JL Mag Rare-Earth on the offering.