Ouyeel to allocate 28% of its equity
Trading platform fully owned by parent offers stock to managers and partners
Online steel transaction platform Ouyeel Co Ltd－the business-to-business platform currently wholly owned by the country's biggest steel-maker China Baowu Steel Group－said it will raise 1 billion yuan ($147 million) by opening the subscriptions of its 28 percent equity to partners and employees.A ceremony was held to mark the event on Wednesday at Baowu Group's new headquarters in Shanghai.
Founded in February 2015, Ouyeel is the fruit of Baowu Steel's exploration of linking the traditional steel industry to the internet. Last year the platform recorded steel transaction volumes of 38.76 million metric tons, up 200 percent year-on-year.
The steel transaction platform said it had seen rapid growth in transactions of industrial products, raw materials, fuels and chemicals.
According to the company, the decision is a major step promoting mixed ownership reform at the steel behemoth parent group
"The move is the very first step and in the future, Ouyeel is looking to introduce more partners and investors through our open equity plan," said China Baowu President Chen Derong.
"Our ultimate goal is to develop Ouyeel into a public listed company," Chen added.
According to Zhang Peixuan, vice-president of Ouyeel, 126 senior management subscribed to 5 percent of the equity, while Benxi Iron & Steel (Group) Co Ltd, Shougang Group and Global Logistic Properties Ltd hold 5 percent respectively, China Construction Bank Trust Co Ltd receives 3.5 percent, Shagang Group obtains 2.5 percent, and Mitsui & Co Ltd of Japan gets 2 percent.
Ouyeel's parent group Baowu Steel is one of the nation's 10 SOEs pioneering mixed ownership reform.
Baowu Steel Chairman Ma Guoqiang said that Ouyeel, by opening its shares to more institutions and individuals, would further diversify its business scope, optimize management and introduce more high quality resources.
According to Baowu President Chen, many Chinese enterprises had shown their interest in participating in the open equity plan, and the final list was drawn up after serious consideration.
Jin Wenhai, senior vice-president of Ouyeel, is one of the employees selected to become a shareholder.
"This has changed Ouyeel from being a job into being a career for me, and makes things easier for our management team to solve problems," he said.
