First Tractor, the mainland's largest agricultural machinery maker, is pushing ahead with its 1.15 billion yuan (HK$1.35 billion) initial public offering today after the securities regulator dismissed fears that it would weaken the market.
The company received a go-ahead from the China Securities Regulatory Commission (CSRC) to float 150 million shares, six months after it cleared an IPO hearing.
It will set an offering price on July 25 following the book-building process, according to a prospectus it filed to the Shanghai Stock Exchange yesterday.
First Tractor plans to raise 1.15 billion yuan for new projects and to upgrade its technologies. That would price the Shanghai-listed shares at 7.67 yuan, a 55 per cent premium to its Hong Kong shares.
H shares of First Motor, which completed an IPO in Hong Kong in 1997, edged up 0.67 per cent to HK$6.03 yesterday.
The CSRC cleared First Tractor's IPO in January. But it fuelled investors' fears of a liquidity drain, leading to an appeal to the commission to suspend the offering.