China-based iron ore mining company Hainan Mining has raised RMB 1.9bn ($310m) in an initial public offering on the Shanghai Stock Exchange, China Money Network reported on Monday.
Hainan, which was 60% majority-owned by conglomerate Fosun Group pre-flotation, sold 187 million shares priced at RMB 10.34 each.
Fosun Group previously held 336 million shares, equivalent to a 20% stake, while Fosun subsidiary Shanghai Fosun Industrial Investment held a further 672 million shares, equivalent to 40%. The combined 60% stake has now been diluted to 54%.
National Council for Social Security Fund, a Chinese government-run strategic reserve fund, has acquired 18.6 million shares, equating to a 1% stake in Hainan.
Fosun invested $122m in 2007 for its 60% stake. Upon flotation, Fosun will be a majority stakeholder in five China-listed companies: Fosun Pharma, Shanghai Yuyuan Tourist Mart, Nanjing Iron & Steel and Shanghai Ganglian e-commerce Holdings.
The remaining 40% stake in Hainan was held by Hainan Iron & Steel.