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Shanying seeks USD 5bn
Posted on Monday, 14 September 2020 13:39
Shanying International Holdings is tapping as many as 35 qualified investors for up to CNY 5.00 billion (USD 731.40 million) to be in a position to take advantage of an expected increase in demand for containerboard in 2020.

The Shanghai-based manufacturer intends to issue no more than 1.38 billion new stocks, representing a 23.1 per cent stake.

China’s paper and paperboard consumption is one of the largest globally, accounting for almost half of Asia’s total and about a quarter of the world’s demand, according to the statement.

Data cited in the announcement indicated there were some 2,700 paper and paperboard manufacturers in the country, which had total production volume of 107.65 million tons, in 2019.

Last year, the total consumption of paper and paperboard in China totalled 106.04 million tons, and annual per capita annual consumption reached 75.0 kg.

This is expected to increase to 111.00 million tons and 81.0 kg, respectively, by the end of 2020.

Shanying is involved in recycled fibre recycling, papermaking, packaging, printing, trade, logistics, investment and financing.

The company’s industrial segment currently ranks third in China, accounting for 9.0 per cent of the domestic market, in terms of production and sales volume.

Its speciality paper business has a leading share in the global category; and its packaging sales output is second locally, with an overall 1.6 per cent share.

Proceeds raised from the cash call will be used to increase annual capacity at two different sites.

Zephyr, the M&A database published by Bureau van Dijk, shows 31 capital increases by companies operating in the paper manufacturing sector have been announced in 2020 to date.

Shanying’s is one of the largest of the year so far, as it matches the CNY 5.00 billion cash call by Yunnan Energy New Materials, which was announced in March and completed in August.

© Zephus Ltd