2.12b yuan targeted in Shanghai listing
Reuters in Shanghai
Neway Valve (Suzhou), a major industrial valve maker, aims to raise up to 2.12 billion yuan (HK$2.7 billion) from an initial public offering in Shanghai this week, becoming the first company to push ahead with a listing on the country's main bourse after regulators reopened the market for flotations.
Nearly 30 mainland companies have announced plans to float in Shanghai and Shenzhen since the securities regulator signalled last month that it would permit the resumption of listings after a freeze in November 2012.
Neway Valve aimed to sell up to 120 million shares at 17.66 yuan each, the company said in a statement posted on the Shanghai stock exchange website, meaning it would raise 2.12 billion yuan if the deal was fully subscribed.
The company will take subscriptions today and tomorrow and announce the results on Sunday.
Two other companies plan to raise a combined 1.02 billion yuan in their listings this week on Shenzhen's ChiNext, the mainland's version of the Nasdaq Stock Market.
According to statements posted on the Shenzhen stock exchange website, Guangdong Xinbao Electrical Appliances plans to issue 76 million shares at 10.50 yuan each to raise about 798 million yuan, and Zhejiang Wolwo Bio-Pharmaceutical hopes to raise 225.5 million yuan by issuing 11 million shares at 20.50 yuan each.
Both firms will take subscriptions from investors today and announce the results tomorrow.
The firms are pricing their shares at relatively high valuations compared with larger listed companies, at projected price-earnings ratios of 30.08 for Guangdong Xinbao and 39.31 for Zhejiang Wolwo, but this is not unusual for smaller-cap stocks.