YIZHENG Chemical Fibre Company is to be the next mainland firm to issue H shares. The firm was part of the first batch of nine Chinese state-owned companies chosen for listing in Hong Kong.
It was jointly founded in 1978 by China International Trust and Investment Corporation (CITIC) and the China National Textile Council but did not start production until 1984.
Today, the company is ranked as the world's third largest chemical fibre producer, accounting for 45 per cent of polyester production in China.
Yizheng manufactures polyester chips and staple fibre, with 93 per cent of sales going to the domestic market and the downstream domestic textile industry.
Sales turnover last year was four billion yuan (about HK$3.6 billion).
It is believed Yizheng's H-share listing will raise between US$200 million and $250 million.
This represents 25 per cent of its issued capital with a further 15 per cent of the equity being issued as A shares on the mainland stock market.
