Zhengzhou Gas, a listing candidate for the Growth Enterprise Market that has a monopoly on natural gas distribution in Zhengzhou city, has warned it could face competition from rivals. The company, based in Henan province, aims to raise HK$125.15 million by selling 500.6 million new H shares at 25 HK cents each. Zhengzhou said in its listing prospectus it had been issued a 'right of special permission' to operate the urban natural gas network in Zhengzhou. But it 'did not rule out the possibility that it may have to compete with other industry peers for relevant approvals in respect of operating natural gas networks in newly developed urban areas of Zhengzhou'. In addition, LPG Company - a subsidiary of its parent Zhengzhou Gas Group set up in June last year - was preparing for full operation in various provinces and some cities in Henan province except Zhengzhou. It was estimated that about 60 million yuan (HK$56.6 million) would be required to put the wholesale liquified petroleum gas (LPG) venture into full operation. Zhengzhou Gas said its parent would not have LPG Company compete with the GEM candidate in urban Zhengzhou on LPG distribution, but warned 'there is no assurance that the LPG sold to other cities [by LPG Company] will not be resold to Zhengzhou and adversely affect Zhengzhou Gas'.