Shanghai Yaoji Playing Card, the world's largest maker of playing cards used for poker, blackjack, bridge and other games, plans to raise 363 million yuan (HK$433.8 million) through an A-share offering to expand its production line.
The company intends to float 23.5 million shares on the Shenzhen Stock Exchange, using the proceeds to build a new factory that can produce 600 million more decks of cards a year, according to its prospectus.
Yaoji's IPO application will be reviewed by the China Securities Regulatory Commission today. If approved, it will be the first mainland playing card maker to launch an IPO.
But the IPO is not a certainty, since cards are often used for gambling. A listing of a playing card company might imply that Beijing is turning a blind eye to gambling, which is illegal on the mainland.
However, investment bankers say Yaoji is allowed to seek a listing based on existing laws and regulations.
The CSRC, which has the final say on IPOs, will consult with other government departments to ensure the applicant's business complies with the authorities' guidelines.