Home » Business » Manufacturing
Chongqing Water shares make big splash
CHONGQING Water Group soared more than 70 percent from its initial public offering price yesterday in Shanghai as it was boosted by strong investor interest in the water industry which is seen to benefit from government infrastructure spending.
Shares of the biggest water supply and treatment company in Chongqing soared 73.35 percent to 12.10 yuan (US$1.77), beating market consensus of between 8 and 10 yuan.
The company issued 500 million shares, or 10.42 percent of its enlarged share capital, at 6.98 yuan each to raise 3.49 billion yuan. It will use the proceeds in new water projects, such as sewage treatment, in Chongqing and the Three Gorges reservoir.
"According to the latest plan, the country will spend an extra 29 billion yuan in water treatment projects in the Three Gorges, which will become a major growth point for Chongqing Water," said Essence Securities Co.
Meanwhile, the severe drought in southern China also attracted investors to take an interest in the water industry in anticipation of possible price increase for the resource and prospects for its growing value, analysts said.
Chongqing Water's strong gain on its debut beat sluggish first-day trading of blue chips this year.
Shares of the biggest water supply and treatment company in Chongqing soared 73.35 percent to 12.10 yuan (US$1.77), beating market consensus of between 8 and 10 yuan.
The company issued 500 million shares, or 10.42 percent of its enlarged share capital, at 6.98 yuan each to raise 3.49 billion yuan. It will use the proceeds in new water projects, such as sewage treatment, in Chongqing and the Three Gorges reservoir.
"According to the latest plan, the country will spend an extra 29 billion yuan in water treatment projects in the Three Gorges, which will become a major growth point for Chongqing Water," said Essence Securities Co.
Meanwhile, the severe drought in southern China also attracted investors to take an interest in the water industry in anticipation of possible price increase for the resource and prospects for its growing value, analysts said.
Chongqing Water's strong gain on its debut beat sluggish first-day trading of blue chips this year.
- About Us
- |
- Terms of Use
- |
-
RSS
- |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证:沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证:31120180004
- |
- 网络视听许可证:0909346
- |
- 广播电视节目制作许可证:沪字第354号
- |
- 增值电信业务经营许可证:沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.