CNBM follow-on raises $493 million

China National Building Materials CNBM on Tuesday raised new capital from a HK$3.82 billion $493 million follow-on offering that it will use to reduce leverage. The deal included an 8.6% portion of shares that were sold by the National Social Security Fund NSSF, meaning CNBM, a producer of cement and other building materials, pocketed about $450 million.

CNBM’s share price has had a strong run since early May, rising 63%, and that demand was evident in the placement as well. The deal was covered in just 45 minutes and, when the books closed after less than two hours, it had received orders for about three times the shares on offer. According...