Baoshan Iron & Steel announced that it had sold 5 billion shares at a price of RMB 5.12 each for a total of RMB 25.6 billion in its initial public offering in Shanghai.

The price of RMB 5.12 was near the top of the price range announced when the sale began two weeks ago.

The company is expected to use the funds raised to purchase assets from Shanghai Baosteel Group, including mining interests, steel mills, and a port, in an effort at reorganization.

This offering in China is considered to be a precursor to a possible international listing by the company.

The current IPO, which set a new record for equity fundraising in Shanghai, was underwritten by China International Capital corporation, a joint venture between the China Construction Bank and Morgan Stanley.

The previous Shanghai record was set by an offering by Sinopec, an oil group, which raised RMB 11.8 billion.