On Nov. 29, China Sunshine Paper Holdings Co. Ltd became listed on the Main Board of The Stock Exchange of Hong Kong Ltd. The global offering of Sunshine Paper comprises 100 million shares. Ninety million shares will initially be offered to professional, institutional and other investors through international placing, while the remaining 10 million shares will initially be offered to the public. At press time, the offer price ranged between about 74 and 96 cents per share.

Based on the mid-point of about 85 cents, it is estimated that the group will receive net proceeds from the global offering of approximately $76.1 million, after deducting the underwriting commission and estimated expenses.

Sunshine Paper expects its 360,000 metric tons/year total production to go up to 1.09 million metric tons by the third quarter of 2009. According to a company release, the net proceeds from the global offering will be used for the following purposes:

•Approximately $66.7 million will be used for the purchase, installation and implementation of various production equipment and supporting facilities to produce white top linerboard and light-coated linerboard products;
• Approximately $6.1 million will be used for the expansion of the group’s network of recovered paper collection points;
• Approximately $2.6 million will be used for research and development efforts;
• Approximately $655,000 will be used for the installation of the group’s enterprise resource planning (ERP) system at its Weifang production facilitates to enhance operating efficiencies.

The Hong Kong public offering commenced on Nov. 29 and closed on Dec. 4. Trading is expected to begin on Dec. 12.