China XLX Fertiliser Ltd said it will launch an initial public offering (IPO) of 262.88 million shares priced at 0.77 sgd each, with 6 million to be sold to the public and the rest placed to institutional investors.

Of the total, 200 million are new shares while the rest are existing vendor shares.

The urea and compound fertiliser maker said it hopes to raise net proceeds of about 145.8 million sgd from the IPO.

About 41.4 million sgd will be used to fund the acquisition of two production plants currently being leased to the company and 9.9 million sgd will go to build a new power generator system for the plants.

The balance of the proceeds will be used for general working capital requirements, the firm said.

China XLX said it intends to distribute dividends to shareholders of no less than 20 percent of its net profit for the financial years 2007, 2008 and 2009.

The offering will open on June 12 and close on June 18, with trading on the Singapore Exchange set to start on June 20.