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IPO

Windshield maker kicks off $664m IPO

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Xinyi Glass Holdings begins its initial public offer today as the maker of glass used in cars looks to raise about $664.4 million from a listing on the main board next month.

The largest exporting business of its kind in China is offering 37.5 million shares to Hong Kong retail investors at between $1.69 and $2.04 until Thursday, representing a price-to-earnings ratio of 10.8 times to 13 times.

Another 337.5 million shares will be placed for international institutional investors.

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Shares of the company will commence trading on February 3.

The company, which expects net profit for last year to have increased 27 per cent year on year to $235 million, said it would spend $440 million of its listing proceeds in setting up two float-glass production lines in Dongguan.

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Chief executive Gerry Tung Ching-sai said the facilities would secure the firm's supply of float glass, which is used in the manufacture of its core product - glass used in cars and other motor vehicles.

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