Tremendous support for broker's IPO
By Winny Wang |
November 13, 2009, Friday
|
Print Edition
Print Edition
CHINA Merchants Securities Co drew 1.1 trillion yuan (US$161 billion) in subscription and was nearly 94 times oversubscribed for its initial public offering in Shanghai.
The country's eighth-biggest brokerage sold 358.55 million shares at 31 yuan apiece to raise 11.1 billion yuan through its IPO to boost operational capital, expanding asset management, investment banking, private equity investment and broking activities.
The price is 56.26 times its earnings per share in 2008, the broker said.
"Its IPO price is higher than estimation. We expected its stock will be priced between 21 yuan and 24 yuan this year, and between 24 yuan and 28 yuan next year," said Huang Qiuhan, an analyst at Sealand Securities Co.
The Shenzhen-based brokerage got approval from the China Securities Regulatory Commission last year, but CSRC suspended new share sales till June on a bearish market.
China Merchants Group owns a 51.65 percent stake in the broker indirectly. Goldman Sachs and UBS Securities are joint underwriters of the IPO. The broker is expected to be the third to list on the Chinese mainland through an IPO.
Everbright Securities Co listed in August, six years after CITIC Securities Co's IPO was approved in 2003.
The country's eighth-biggest brokerage sold 358.55 million shares at 31 yuan apiece to raise 11.1 billion yuan through its IPO to boost operational capital, expanding asset management, investment banking, private equity investment and broking activities.
The price is 56.26 times its earnings per share in 2008, the broker said.
"Its IPO price is higher than estimation. We expected its stock will be priced between 21 yuan and 24 yuan this year, and between 24 yuan and 28 yuan next year," said Huang Qiuhan, an analyst at Sealand Securities Co.
The Shenzhen-based brokerage got approval from the China Securities Regulatory Commission last year, but CSRC suspended new share sales till June on a bearish market.
China Merchants Group owns a 51.65 percent stake in the broker indirectly. Goldman Sachs and UBS Securities are joint underwriters of the IPO. The broker is expected to be the third to list on the Chinese mainland through an IPO.
Everbright Securities Co listed in August, six years after CITIC Securities Co's IPO was approved in 2003.
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