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Christine Chan

SHANGHAI Haixin Co is to launch a public B-share offer in Hong Kong this year, becoming the third mainland firm to consider a direct issue of B shares in the territory.

  Shanghai Outer Gaoqiao Free Trade Zone Development offered its B shares in July and Shenzhen SEZ Real Estate's issue is expected soon.

  Shanghai's B-share offers have always made through an international placing.

   Shanghai Haixin, which produces nylon and polyester materials for toys, is one of eight firms in the second batch of Shanghai companies approved this year to issue B shares.

  According to the firm's prospectus for mainlanders, it will issue 10 million individual A shares in China and has approval to issue 35 million B shares for foreigners.

  Sun Hung Kai Investment Services will be the lead manager for the B-share public offer, with Shanghai Shenyin Securities acting as the mainland manager.

  In Hong Kong, an official at Sun Hung Kai said yesterday the company's B-share prospectus would be submitted to the Securities and Futures Commission for approval ''within days''.

  With the related accounting and auditing work having been completed, the Sun Hung Kai official said he expected the B shares to be offered in Hong Kong this year.

  ''We're just waiting a go-ahead and relevant formalities from the mainland,'' he said, declining to reveal the B-share issue price.

  But it is understood the issue price of the A and B shares will be very close.

    Haixin's A share price has been set at seven yuan, according to the company, but its A-share listing on the Shanghai exchange has yet to be scheduled.

  An official at Shanghai Securities and Exchange Commission said yesterday that while it had endorsed the B-share issue, formal approval had to be obtained from the China Securities Regulatory Commission in Beijing.

  But he said the Shanghai commission welcomed Haixin's move which he believed could broaden its shareholder base and pave the way for future development.

  An official of the company's shareholding restructuring team said it decided on a public offer in Hong Kong because most of its toy-manufacturer clients were based in the territory.

  The public offer in Hong Kong could help build up its reputation overseas, she said.

  Shanghai Haixin, a Sino-foreign joint venture, began production in 1988.

   The company official said the foreign partners were two companies from Hong Kong.

   Importing raw materials from Japan, the company manufactures nylon and polyester materials for toys, mostly for sale overseas.

  Of the 19 companies in the second batch of Shanghai issues this year, Haixin has the highest projected earnings per share for 1993, at 53.14 fen, according to domestic Chinese accounting principles.

  A total of 465 million shares will be issued by the eight firms in the second batch having approval to offer B shares.

  Shanghai Diesel Engine Works will issue 100 million shares, Shanghai Haixin 35 million; Shanghai Friendship Store 40 million; Shanghai Automatic Meters Factory 70 million; Shanghai Sewing Machine 75 million; Shanghai Materials Goods Trading Centre 50 million; Shanghai Hero Pen 35 million; and Shanghai Galvanised Tube Factory 60 million.

       The mainland lead manager for the first three issues is Shanghai Shenyin Securities and for the following five is Shanghai International Securities.



Haixin plans B-share offer in territory