Unfazed by regional stock market turmoil, Dalian Refrigeration will proceed with a B-share flotation in Shenzhen this year.
The company, co-ordinated by DBS Asia Capital, is expected to begin an international roadshow next month. A source close to the underwriting syndicate said the walk-in freezer manufacturer, based in Dalian in Liaoning province, planned to raise about US$30 million.
Dalian Refrigeration, which has listed A shares in Shenzhen, recorded an eight per cent drop in net profit to 56.82 million yuan (about HK$52.72 million) in the first six months under Chinese accounting standards. During the period, gross sales rose 16 per cent to 306.36 million yuan. China's B shares saw less volatile trading last week, compared with the Hong Kong stock market which was hamstrung by speculation on the SAR's currency peg with the US dollar.
The market crash has led many mainland companies to hold back listing in Hong Kong. China National Aviation, the listed flagship of mainland aviation regulator Civil Aviation Administration of China, and Yanzhou Coal Mining have announced plans to shelve their flotations, after they had started their international roadshows.
Other candidates such as Panzhihua Iron and Steel and Wuhan Iron and Steel are understood to be delaying listing until next year.