Huatai aiming to raise US$2.53b to invest
By Winny Wang |
February 9, 2010, Tuesday
|
Print Edition
Print Edition
HUATAI Securities Co plans to raise as much as 17.26 billion yuan (US$2.53 billion) through its initial public offering in Shanghai to fund its innovative business and supplement working capital.
The Jiangsu-based brokerage will sell up to 784.6 million shares at 20 to 22 yuan each, it told Shanghai Stock Exchange yesterday.
The IPO, accounting for 14 percent of its expanded capital, will help the brokerage increase investment in innovative business such as margin trading and short selling.
The price of the company was 29.41 to 32.35 times its earnings in 2009, compared with 25 times profit of Everbright Securities Co and 30.7 times for China Merchants Securities Co which launched IPOs last year.
"The company's dynamic price-earnings ratio should be between 20 and 25 this year, and a reasonable price range is between 17 yuan and 21.25 yuan," said TX Investment Consulting Co.
Investors are losing appetite for new stocks after China XD Electric and China Erzhong Group Deyang Heavy Industries Co last month became the first two companies that fell below offer price at trading debuts on the Chinese mainland since 2004.
China First Heavy Industries failed to set the offer price at the top of an indicated range on concern over lackluster investor response.
The Jiangsu-based brokerage will sell up to 784.6 million shares at 20 to 22 yuan each, it told Shanghai Stock Exchange yesterday.
The IPO, accounting for 14 percent of its expanded capital, will help the brokerage increase investment in innovative business such as margin trading and short selling.
The price of the company was 29.41 to 32.35 times its earnings in 2009, compared with 25 times profit of Everbright Securities Co and 30.7 times for China Merchants Securities Co which launched IPOs last year.
"The company's dynamic price-earnings ratio should be between 20 and 25 this year, and a reasonable price range is between 17 yuan and 21.25 yuan," said TX Investment Consulting Co.
Investors are losing appetite for new stocks after China XD Electric and China Erzhong Group Deyang Heavy Industries Co last month became the first two companies that fell below offer price at trading debuts on the Chinese mainland since 2004.
China First Heavy Industries failed to set the offer price at the top of an indicated range on concern over lackluster investor response.
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