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First Heavy IPO to raise up to US$1.7b
By Winny Wang |
January 30, 2010, Saturday
|
Print Edition
Print Edition
CHINA First Heavy Industries Co plans to raise as much as 11.6 billion yuan (US$1.7 billion) in the biggest initial public offering on the Chinese mainland so far this year to expand production and replenish working capital.
The heavy machinery maker will sell 2 billion shares, or 30.6 percent of its expanded capital, at between 5 yuan and 5.80 yuan each, it said in a statement to the Shanghai Stock Exchange yesterday.
The price range is nearly 36.2 times to 42 times the company's earnings in 2008, the statement said.
China Securities Research forecast the company's profit to rise 72.7 percent from a year earlier to 1.86 billion yuan this year, and 26.4 percent higher next year at 2.35 billion yuan. It said a reasonable price range for the company should be between 9 yuan and 9.80 yuan per share.
The Heilongjiang-based company received subscriptions from institutional investors yesterday. Subscriptions for individual investors will begin on Monday.
All eyes will be on the trading of the new shares especially after China XD Electric Co fell below its offer price on its debut on Thursday, the first time since 2006.
New stocks are favored by investors as they usually surge on their first day of trading.
The heavy machinery maker will sell 2 billion shares, or 30.6 percent of its expanded capital, at between 5 yuan and 5.80 yuan each, it said in a statement to the Shanghai Stock Exchange yesterday.
The price range is nearly 36.2 times to 42 times the company's earnings in 2008, the statement said.
China Securities Research forecast the company's profit to rise 72.7 percent from a year earlier to 1.86 billion yuan this year, and 26.4 percent higher next year at 2.35 billion yuan. It said a reasonable price range for the company should be between 9 yuan and 9.80 yuan per share.
The Heilongjiang-based company received subscriptions from institutional investors yesterday. Subscriptions for individual investors will begin on Monday.
All eyes will be on the trading of the new shares especially after China XD Electric Co fell below its offer price on its debut on Thursday, the first time since 2006.
New stocks are favored by investors as they usually surge on their first day of trading.
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