Chinese steel trader and logistics company, Rongtai International (ASX:RIG)
, has announced it will extend its initial public offer period in order to provide more investors an opportunity to gain exposure to the fast growing Chinese economy.
Rongtai, based in Fujian Province in China, is an expanding profitable iron ore and steel trader.
The offer seeks to raise between $3 million and $10 million from institutional and private investors and will now be open until 3 December 2010.
Rongtai has already attracted $10.6 million in private equity and will operate a strong dividend policy.
The Company says the offer, which opened on 25 October 2010, gives investors the opportunity to invest in the fast growing Chinese economy which is linked into Australia through the resource sector.
Its turnover and profit have been increasing due to its on-line trading platform, Custeel, which is owned in partnership with 15 large Chinese steel companies, through the introduction of transactions and membership fees (the pilot program was free to subscribers).
The Company is also expanding into the Shanghai, Tianjin and Taiwan markets. 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 state owned port authorities for exclusive use at two ports located in the Haixi New Economic Zone which is adjacent to Taiwan. This location means a minimum reduction in shipping time of 2 days from Australia to China.
It also features logistics capability in China and an integrated e-commerce platform which enables it to handle every part of a transaction. The platform allows customers to buy and sell products, arrange for raw materials to be shipped to China as well as warehousing and distribution by truck, ship and rail.