Luoyang Glass heads second batch of H-share listings
By IVAN TONG
LUOYANG Glass Company, China's largest manufacturer of float sheet glass, has emerged as the first in the second set of H-share enterprises to be listed in Hong Kong.
The listing hearing with the Hong Kong stock exchange's listing committee has been scheduled for next month, and if approved the company will be listed by the end of the month, according to one source.
Luoyang Glass, located in Henan, central China, is currently the only enterprise with four float glass production lines on the mainland. The flotation will help raise capital for expanding its production capacity and becoming an international enterprise.
It aims to raise about US$50 million from the flotation.
Unlike last year when the mainland enterprises in the first batch were racing to be the first listing, analysts said that being first was now not as important as market conditions and the quality of the stock.
Meanwhile, Woo Kwan Li and Lo law firm partner Edward Cheung confirmed that the company has been appointed legal adviser for Qingling Automobiles and Guangdong Foshan Ceramics.
The two companies are understood to be planning to raise a total of US$300 million (HK$2.3 billion.) Mr Cheung said that the law firm was not particularly keen to get a substantial share of the legal business in the second set of H-share listings.
''Heavy workload is a consideration and the firm does not want to dilute its efforts over too many jobs,'' he said.
This is in stark contrast to the situation in the first batch of H-share listings, when the law firm was legal adviser for three enterprises among the nine seeking a Hong Kong listing.
On selecting merchant banks and accounting firms, the mainland-backed China Development Finance (HK) was likely to secure the largest number of underwriting jobs, including Luayang Glass and Guangdong Foshan Ceramics.
It is known that Smith Barney Shearson, a newcomer to the H-share listings, will be the underwriter for Qingling Automobile.
Morgan Stanley will also have a significant share given its expertise in a New York listing. It has been appointed financial adviser for Eastern Airline, supposedly the largest flotation in the second batch.
Accounting firm Cooper and Lybrand will be the auditor for Eastern Airline and Chengdu Cable Plant.