SHENZHEN Nanshan Power Station Co is to test the strength of the Shenzhen stockmarket tomorrow when it launches a $146.15 million international private placing of B shares for listing there. The flotation is viewed widely as a yardstick to gauge the market's ability to absorb foreign capital and new stock category, following less than exciting B share offers in Shenzhen earlier in the year. The underwriting agreement on the international offering of 37 million B shares - 20.6 per cent of the company - is to be signed today in the special economic zone. The share offer by way of private placing is scheduled to be launched tomorrow, according to the company's listing prospectus. Listing on Shenzhen exchange is expected on November 28. The shares are priced at $3.95 a share, 7.9 times its 1994 forecast earnings, on a fully diluted basis, against Shenzhen's market average of 10.3 as stated in Swiss Bank Corp's China Equity Research. The company prospectus projected fully diluted earnings per share of 50 cents, and a weighted average per share of 58 cents on 1994 forecast earnings. For the year to December, the company estimated a taxed profit of about $85 million. This compares with profits of $62.5million in 1993 and $47 million in 1992. Of the $135 million proceeds, $77 million will be used to buy gas turbine power generating units, and $58 million will repay bank borrowings obtained last year to buy a generating unit. Nanshan Power is the latest to offer B shares on the Shenzhen Stock Exchange this year, following China International Marine Container, Shenzhen Benelux and Shenzhen Textile. B shares, reserved for foreigners, are traded in foreign currencies. They are opposed to A shares, which are meant for mainlanders. Set up in March 1990, the company was established with Shenzhen Nanshan Electronics Industry Development Co as one of the founding shareholders, having a 35 per cent stake. With total installation capacity of 270,000 kilowatts, Nanshan Power is one of 13 plants supplying power to the special economic zone. Since August last year, the company had been the largest supplier to the Shenzhen electricity network among the 13 oil-fired power stations in Shenzhen, said the prospectus. The provision of electricity to Shenzhen Municipal Bureau is now the principal source of revenue of the company. Under an electricity supply agreement struck in 1990 with the power supply bureau, the company has a commitment from the bureau for the supply of a certain amount of electricity to the bureau for one year. The agreement will be renewed on a yearly basis. However, Nanshan Power did not secure any guaranteed rate of return from the authorities, which the securities official in Shenzhen said would result in higher flexibility for the company.