Ship firm IPO nets US$2.2b on outlook
By Ding Yining |
December 10, 2009, Thursday
|
Print Edition
Print Edition
CHINA Shipbuilding Industry Co raised 14.7 billion yuan (US$2.15 billion) in the country's third-largest initial public offering this year.
The country's largest vessel equipment maker sold 1.995 million shares at 7.38 yuan each, the higher end of its price range, the company said in a statement to Shanghai Stock Exchange yesterday.
The price corresponds to 42.1 times its 2008 earnings.
The new shares will start trading in Shanghai next Wednesday, said China International Capital Corp, the main underwriter.
"Investors are optimistic of its sales growth after the capital injection, which will be used to expand facilities," said Lv Juan, an analyst at Guotai Jun'an Securities. The shares are very likely to soar more than 10 yuan on their debut, she added.
Retail and institutional investors oversubscribed to 60 percent of the shares by 72.33 times in an online sale while 40 percent of the IPO was 39.81 percent oversubscribed by institutional investors.
The company is expected to boost its business in the energy and military sectors from 30 percent now to around 45 percent in 2011.
The domestic shipbuilding industry still faces uncertainties and has seen a sharp drop in new orders since the beginning of this year.
The China Association of the National Shipbuilding Industry said in late November that orders for new vessels in the first 10 months this year were 19.11 million deadweight tons, down 63 percent from the same period last year.
Chinese firms have raised 159.1 billion yuan in IPOs after their resumption in June.
China State Construction Engineering Corp raised 50.2 billion yuan in July and Metallurgical Corporation of China Ltd netted 18.97 billion yuan in September.
The country's largest vessel equipment maker sold 1.995 million shares at 7.38 yuan each, the higher end of its price range, the company said in a statement to Shanghai Stock Exchange yesterday.
The price corresponds to 42.1 times its 2008 earnings.
The new shares will start trading in Shanghai next Wednesday, said China International Capital Corp, the main underwriter.
"Investors are optimistic of its sales growth after the capital injection, which will be used to expand facilities," said Lv Juan, an analyst at Guotai Jun'an Securities. The shares are very likely to soar more than 10 yuan on their debut, she added.
Retail and institutional investors oversubscribed to 60 percent of the shares by 72.33 times in an online sale while 40 percent of the IPO was 39.81 percent oversubscribed by institutional investors.
The company is expected to boost its business in the energy and military sectors from 30 percent now to around 45 percent in 2011.
The domestic shipbuilding industry still faces uncertainties and has seen a sharp drop in new orders since the beginning of this year.
The China Association of the National Shipbuilding Industry said in late November that orders for new vessels in the first 10 months this year were 19.11 million deadweight tons, down 63 percent from the same period last year.
Chinese firms have raised 159.1 billion yuan in IPOs after their resumption in June.
China State Construction Engineering Corp raised 50.2 billion yuan in July and Metallurgical Corporation of China Ltd netted 18.97 billion yuan in September.
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