China's largest ammonium sulfite manufacturer lists on London Stock Exchange

Updated: 2014-08-02 01:14

By Cecily Liu (chinadaily.com.cn)

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China's largest ammonium sulfite manufacturer lists on London Stock Exchange

Chinese company GTS Chemical Holdings plc became listed on the Alternative Investment Market of the London Stock Exchange on Friday.

Chinese company GTS Chemical Holdings plc became listed on the Alternative Investment Market of the London Stock Exchange on Friday, becoming the fourth Chinese company to do so this year.

GTS has fundraised £3.1 million through the listing, which made its market capitalization on admission at the placing price approximately £36.8 million. The combined amount raised by the four new Chinese listings on the LSE are £15 million, and the combined capitalization approximately £300 million.

GTS is the largest Chinese manufacturer of ammonium sulfite, representing 34.8 percent of Chinese output in 2013. In July last year, the company expanded its business activities to include the blending and distribution of lubricating oils.

Ammonium sulfite is a chemical key in the process of manufacturing paper from straw using the ammonium sulfite process. GTS uses waste products from the fertilizing and coking industries as its raw material.

According to the company, sales of ammonium sulfite in China are expected to grow at an annual compound rate of 12 percent from 2014 to 2020, which gives the company great growth prospects.

Liu Cheng, CEO of GTS, says the IPO will enable the company to broaden its investor base and funds raised can help the company expand its production facilities.

He says the company's environmentally friendly production methods are a great selling point in winning Western investors' trust and confidence.

Su Xinlin, CFO and company secretary of GTS, says that becoming a listed company has assisted GTS to improve its corporate governance measures, which is key to the long term growth of the company.

Currently there are 53 Chinese companies listed on AIM, including GTS. There are an additional 14 Chinese companies listed on the main market of the LSE.

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