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Shenzhen company changes strategy for B share issue

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UNDAUNTED by the cool response to recent B share listings, Shenzhen Gintian Industry is pushing ahead with its $407 million B share issue.

But in view of the market situation, it is making a private placement and an open offer at the same time.

The diversified company, which already has A shares listed in Shenzhen, said 19 million B shares on offer would be placed with foreign investors and another 19 million would be sold through a public offering.

In Shenzhen yesterday, company chairman Huang Hanqing said 38 million B shares would be offered at $10.71 a share from Monday to May 14.

The issue represents 27.5 per cent of the company's enlarged share capital.

Trading is expected to start on or before June 11.

The sluggish trade in B shares on the Shenzhen stock exchange and the cool response towards some Shenzhen listings would not affect Shenzhen Gintian, Mr Huang said.

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