China BlueChemical, a unit of the biggest Chinese offshore oil producer, will sell 90 percent of the 1.4 billion shares in its initial public offering to international institutional investors and 10 percent will be offered to the public in Hong Kong.
 
The fertilizer producer's public offering was to begin Monday and close at noon on Thursday, with trading scheduled to begin Sept. 29, the company said. Shares will be offered at between 1.38 and 1.90 Hong Kong dollars, or between 17 and 24 U.S. cents, each.

Demand for fertilizer is growing in China as farmers plant more crops to feed the world's most populous nation. China Blue, a unit of China National Offshore Oil Corp., produces nitrogen fertilizers like ammonia and urea, used to grow almost half the world's food.
 
"We have received at lot of enthusiasm for our international placement so far," Wu Mengfei, chairman of China Blue said. "We are the leading producer of fertilizer in China, the world's fastest-growing market and biggest consumer."
 
China Blue will determine the price of its shares on Friday, and results of the allotment will be announced Sept. 28, the company said.
 
Yara International, based in Oslo and the world's biggest fertilizer maker, will buy 140 million shares, or 10 percent of the IPO, Wu said.
 
China Blue plans to use the sale proceeds to finance the construction of a facility that makes polyoxymethylene, an engineering plastic used to make gearing, at its Tianye plant in Inner Mongolia. The remainder of the IPO funds will be reserved for debt payment and working capital.

Source:佚名