Others News
- PetroChina Co. set to make strong debut
Date: 5-Nov-2007 Sources: (Shenzhen Daily)
PETROCHINA Co. is set to make a strong trading debut in Shanghai today on heavy institutional demand fueled by ample market liquidity and expectations of robust earnings growth.
Shares in the company are expected to rise to 37 yuan (US$4.96) on their first day of trading in Shanghai, more than double their initial public offering price of 16.70 yuan, according to the average forecast of four analysts.
That would propel them to a 96 percent premium to the firm's Hong Kong-listed shares, which closed at HK$19.6 (US$2.52) Friday.
PetroChina raised 66.8 billion yuan by selling 4 billion new yuan-denominated A shares, making it China's largest domestic IPO to date. The new shares account for 2.18 percent of the firm's enlarged share capital.
'Demand for oil and gas will remain robust in China in coming years, driven by the industrialization process and rapid economic expansion of the country,'said Qiu Xiaofeng, an analyst at China Merchants Securities.
Money raised from the IPO will help the company boost its oil and gas output in coming years to meet rising demand, leading to a steady growth in its earnings, analysts said.
They said they expect PetroChina's earnings per share to rise to 0.79-0.90 yuan this year, from 0.74 yuan in 2006, and reach 0.90-1.10 yuan next year.
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