China/Singapore: Sincap Group, a gypsum mining company in China's Shandong Province, has launched an initial public offering for a listing on the Catalist board of the Singapore Exchange. The company is offering 32.5 million shares, comprising 25.5 million new shares and seven million vendor shares, at US$0.16 apiece.
Sincap hopes to raise US$4.1m, which will be earmarked for use in diversification of its products and for general working capital. Specifically, the group plans to construct and commission a K-gypsum powder plant. K-gypsum powder, which can only be processed from crystalline gypsum, is commonly used in the manufacture of moulds for precision casting as well as plaster casts for medical uses. The company also possesses mining and exploration rights to some of the largest gypsum reserves in the Dawenkou Basin in Shandong Province.
"Our decision to list is timely considering our current stage of development. With the funds raised we will be able to realise the untapped potential in our gypsum business, particularly with regard to a new product, K-gypsum powder, that we intend to develop," said Sincap's chairman and CEO Fu Hao.
