Qinfa starts receiving orders from investors
China Qinfa Group, a mainland coal trader and logistics firm, started receiving orders from professional investors yesterday for its HK$630 million initial public offering and would take subscriptions from retail investors on Friday, sources said.
The company is marketing 250 million new shares at HK$2 to HK$2.52 each, raising at least HK$500 million to fund investment in new production facilities, a source said.
The price range translates into as much as 8.5 times the firm's earnings last year. Trading is expected to start on July 3. China Everbright Capital is advising Qinfa.
The company will compete with two other new offerings - shampoo manufacturer Bawang International's HK$1.67 billion deal and the HK$2.18 billion sale by sportswear retailer 361?
Qinfa is the largest privately held coal trader by volume on the mainland, and its businesses include purchase, sale, blending, storage and transport of coal.