Others News
- Shanghai News
Date: 25-Sep-2007 Sources: (Shenzhen Daily)
CHINA Shenhua Energy Co., the nation's largest coal producer, plans to raise 66.6 billion yuan (US$8.9 billion) to fund expansion in what would be the biggest share sale this year.
The company will sell as many as 1.8 billion yuan-denominated A shares for between 34.99 yuan and 36.99 yuan each, Beijing-based Shenhua said in a statement to the Hong Kong stock exchange yesterday.
Shenhua, listed in Hong Kong since 2005, will sell shares to mainland investors for the first time, tapping the world's best-performing market this year. The sale may exceed the US$7.7 billion China Construction Bank Corp. raised by selling 9 billion shares last week.
It will use the proceeds to expand mines, power production, railroads and harbors and to fund acquisitions including coal mines from parent Shenhua Group Corp.
'The pace of asset injections will increase following the A-share listing, which we see supporting the H-share price,'' Donovan Huang, a Hong Kong-based analyst at Nomura International Ltd.
The price will be at a discount to Shenhua's share price in Hong Kong. The stock closed at HK$43.30 (US$5.56) Sept. 21. Shares of the company have more than doubled this year, outpacing the 29 percent gain in the benchmark Hang Seng Index.
Shenhua Group has four coal mines with 60 million metric tons of coal output that will be injected into Shenhua, Huang said. That represents about 39 percent of Shenhua's annual output.
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