Mainboard-listed China Gaoxian Fibre Fabric Holdings, one of the leading suppliers of premium differentiated polyester yarn and warp knit fabric in China, says its KDRs will be listed on the KRX Kospi Market on Jan 25.

The company will issue 30 million KDRs at an issue price of KRW7,000 ($8.111) each. Each KDR is equivalent to 20 new shares of the company, which translates to an issue price of $0.405 per share.

The issue price per share represents a 8.7% discount to the weighted average price of trades done on the SGX for the full market day on Jan 10.

China Gaoxian says institutional investors including Morgan Stanley, Deutsche Bank, Nomura, Tong Yang Asset Management and Hana UBS have subscribed to the KDRs.

Net proceeds from the KDRs issue is expected to amount to $223.8 million and will be used to expand the group’s businesses.

In particular, the company intends to expand upstream by producing polyethene terephthalate (PET) chips, which is the primary raw material used in the production of premium differentiated fine polyester yarn and warp knit fabric, to integrate the group’s existing production process and boost margins through costs savings.