Book distributor to sell H shares
Xinhua Winshare, a major book distributor in the mainland, plans to sell new H shares in its US$200 million initial public offering in Hong Kong with a slight discount to its global peers, according to a source.
Winshare will be the first mainland firm to list H shares in Hong Kong after China Molybdenum's US$943 million deal last month despite speculation that Beijing is discouraging such sales in an attempt to bolster the local exchanges in Shanghai and Shenzhen.
The company aimed to set its shares at a value of 18 to 20 times earnings for this year, which is lower than the industry average of 23 to 24 times, sources said.
Barnes & Noble and Borders Group are trading at about 23 to 26 times earnings.
'The cheaper valuation is based on its smaller operating scale compared to other international giants,' a source said.
