Prime pork supplier's IPO raises 322m yuan
Hunan Xinwufeng, a prime pork supplier to Hong Kong and Macau and an associate company of unlisted Hong Kong firm Ng Fung Hong, has raised 322 million yuan through a listing on the Shanghai A-share market.
The offer was priced at 16.73 times last year's net profit and was 2,143 times over-subscribed. The shares will make their debut next Wednesday, according to China Euro Securities, CLSA's mainland investment banking joint venture with Xiangcai Securities.
This was the first A-share initial public offering launched by China Euro, the first sino-foreign joint-venture investment bank, allowed under 2002's new rules.
'The nature of China's capital markets means there is a relatively long lead time to bring deals to market but the hard work is now paying off and China Euro has a surprisingly full pipeline going forward,' said Gary Coull, the executive chairman of CLSA.
In the coming four to six weeks, Shanghai-based China Euro would launch four further A-share offerings, including three IPOs - for one of the world's largest zinc smelters, a medical-equipment maker and a heating and ventilation equipment producer - plus a follow-on offering for a power equipment manufacturer, said Tim Ferdinand, CLSA managing director and China Euro vice-chairman.
The size of each of the four offerings, which have been approved by the China Securities Regulatory Commission, will range between 200 million yuan and 500 million yuan.
