Joint bookrunners JPMorgan and Merrill Lynch began pre-marketing a $200 million to $300 million IPO for Jinxi Iron Steel on Monday. Formal roadshows are scheduled to kick off on February 5, with pricing set for either February 19 or 20. Co-leads are Citic and Cazenove.
Jinxi has a miniscule 1.7% market share in China's fragmented steel sector, but its flotation stands out because it is the first former State Owned Enterprise to successfully MBO and seek an overseas listing. Following its privatization and transformation into a sino-foreign JV in 2001, management came to own about 48% of the stock. The IPO will represent about 25% of the company's issued share capital.
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