China Crystal New Material Holdings Co Ltd, a mica powder producer in China, has filed an application with the Taiwan Stock Exchange (TWSE) for a primary listing on the main board.

The company, which is registered in the Cayman Islands, was the seventh foreign one so far this year to seek a primary listing in Taiwan, according to a statement issued by the TWSE.

Through its flagship subsidiary, Youjia Pearlescent Mica Co (友佳珠光雲母) in Jiangsu Province, China Crystal manufactures synthetic mica power, synthetic mica flakes and synthetic strips that are used for the production of pearlescent pigments or fire-proof materials.

China Crystal, which is currently capitalized at NT$600 million (US$20.48 million), sells its products mainly in China, but also to Japan and Europe.

GLOBAL TOTAL

According to the parent company’s prospectus, Youjia produced 4,163 tons of synthetic flakes last year, accounting for 62.1 percent of total global production. It manufactured 3,627 tons of synthetic mica powder, making up 69.4 percent of the global total.

The prospectus showed that China Crystal is planning to issue 10.6 million new shares for the listing and expects to raise NT$689 million in funds as working capital.

FUND RAISING

The company said the issue price has been tentatively set at NT$65.00, and it expects to complete its fund raising activities in the second quarter of next year.

China Crystal said it will use the funds to meet the demand for production capacity expansion, purchase production equipment, and improve its financial structure.

Last year, China Crystal posted NT$287 million in pro forma consolidated net profit on sales of NT$567 million. In the first half of this year, it registered NT$135 million in pro forma consolidated net profit on sales of NT$297 million.

Mica Powder uses:

Source Wilipedia

Throughout the ages, fine powders of mica have been used for various purposes, including decorations. Powdered mica glitter is used to decorate traditional water clay pots in India, Pakistan and Bangladesh; it is also used on traditional Pueblo pottery, though not restricted to use on water pots in this case. The gulal and abir (colored powders) used by North Indian Hindus during the festive season of Holi contain fine, small crystals of mica to create a sparkling effect. The majestic Padmanabhapuram Palace, 65 km (40 mi) from Trivandrum in India, has colored mica windows.

Mica is widely distributed and occurs in igneous, metamorphic and sedimentary regimes. Large crystals of mica used for various applications are typically mined from granitic pegmatites.

Until the 19th century, large crystals of mica were quite rare and expensive as a result of the limited supply in Europe. However, their price dramatically dropped when large reserves were found and mined in Africa and South America during the early 19th century. The largest documented single crystal of mica (phlogopite) was found in Lacey mine, Ontario, Canada; it measured 10×4.3×4.3 m and weighed about 330 tonnes.^[3] Similar-sized crystals were also found in Karelia, Russia.^[4]

The British Geological Survey reported that as of 2005, Kodarma district in Jharkhand state in India had the largest deposits of mica in the world. China was the top producer of mica with almost a third of the global share, closely followed by the US, South Korea and Canada. Large deposits of sheet mica were mined in New England from the 19th century to the 1970s. Large mines existed in Connecticut, New Hampshire, and Maine.