A CHINESE associate of Hong Kong's Benelux International is seeking to raise $40 million by floating B shares in Shenzhen, in the exchange's second issue aimed at foreign investors this year.
Shenzhen Benelux Enterprise Co, a manufacturer of magnetic storage media products, has earmarked half of the proceeds to pay for diversification into liquid gas distribution and property development in Wuhan, China.
A source with the underwriting team said the company would issue 13 million B shares to international investors through a private placement.
The shares, accounting for 26 per cent of the company's enlarged share capital, would be priced at between eight and 8.5 times 1994 prospective earnings.
The pricing would be fixed by the end of this month, pending the final verification of the listing prospectus, the source said.
Shenzhen Benelux has steadily increased revenue from sales of micro-cassettes, 3.5-inch floppy disks, video-cassette shells and audio-tape cassettes.