Media ReleasesRongtai Holdings

View All Rongtai Holdings News


Rongtai International Group Holdings Limited launches IPO on Australian Securities Exchange

Chinese steel trader and logistics company, Rongtai International, has launched its initial public offering (IPO) through a listing on the Australian Securities Exchange – making it the first Chinese Business to Business company to list in Australia.
 
Rongtai is a vertically integrated commodities business, facilitating the importing of raw materials into China. The Company has established an integrated e-commerce platform capable of handling every part of a transaction from execution to delivery.
 
The Company’s profitable iron ore and steel trading arm, Custeel, is an on-line trading platform. Additionally, it holds exclusive use at two Chinese ports allowing rapid transport between Australia and China.
 
The offer seeks to raise between $3 million and $10 million from institutional and private investors.
 
Rongtai International Managing Director Lin Jie said the offer provides the opportunity to invest in the fast growing Chinese economy, which is linked into Australia through the resource sector.  
 
“Rongtai provides a holistic solution to customers wishing to import commodities into China,” Mr Jie said.
 
“Our integrated solutions allow customers to buy and sell commodities, arrange for raw materials to be shipped to China as well as warehousing and distribution by truck, ship and rail,” he said.
 
“Rongtai is targeting growth through in its existing business as well as through expansion.”
 
“Custeel is owned in partnership with 15 large Chinese steel companies and sources revenues through transactional fees and membership fees.”
 
“The Company is also expanding into the Shanghai, Tianjin and internationally through Taiwan.”
 
“The Chinese Government strongly supports the modernisation of the logistics supply chain through the Haixi New Economic Zone.”
 
“Rongtai has two 10-year contracts with Chinese state-owned port authorities for exclusive use at two ports located in the Haixi New Economic Zone, which is adjacent to Taiwan.”
 
“These locations means a shipping time from Australia to China can be reduced by at least 2 days.”
 
 
The Company, which is based in Fujian Province in China, has already attracted $10.6 million in private equity and will operate a strong dividend policy.
 
The IPO opened on 25 October 2010 and will close on 22 November 2010.
Download this document