Hengyang Petrochemical Logistics, the petrochemical logistics services provider engaged in the storage and transportation of liquid petrochemical products in the Yangtze Delta region, says its initial public offering (IPO) has been fully subscribed.

 
At the close of application on 12 noon today, Hengyang says it received 303 valid applications from institutional and corporate investors for the 18 million shares, receiving $6.8 million in the process.
 
Trading of Hengyang shares will start tomorrow at 9 am. CIMB Bank Berhad, Singapore Branch is the sponsor and CIMB-GK Securities is the placement agent for Hengyang’s IPO.

Hengyang say the net proceeds of $4.5 million from the IPO will be primarily used for the partial funding of the construction of new storage facilities at the group’s Deqiao facility.

The Deqiao facility has a total land area of 313, 667 sq m comprising 118 new storage tanks with 300,000 cubic metres of storage capacity and a new petrochemical jetty. The construction and installation of the Deqiao facility will be completed in two phases. The first phase which includes the construction and installation of 42 storage tanks with storage capacity of 126,000 cubic metres and development of new petrochemical jetty, is expected to be completed in the first quarter of 2010.