Major corn processor Global Bio-Chem Technology Group Co Ltd said it planned to raise net proceeds of about HK$600 million (US $77 million) from a separate listing of its corn sweeteners arm on the Hong Kong bourse.
The Hong Kong-listed corn processor said in a statement late on Sunday that it had submitted a formal application to the Hong Kong stock exchange for a listing of its corn sweeteners sales and manufacturing unit, Global Sweeteners Holdings Ltd.
About HK$420 million of the proceeds will go towards new production facilities in Changchun and Jingo in China, while another HK$147 million will be used to expand production capacity of high fructose corn syrup products.
The remainder will be used for general working capital. The company said the final structure of the spin-off, including the size of the offering, had yet to be determined.
In April, Global Bio-Chem said it had applied for a separate listing of Global Sweeteners, which makes and sells corn sweeteners, including glucose, maltose, orbital, and crystallised glucose, on the Hong Kong stock exchange.
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