Others News
- Shenhua draws record orders for IPO
Date: 27-Sep-2007 Sources: (Shenzhen Daily)
CHINA Shenhua Energy, the country's largest coal producer, attracted 2.6 trillion yuan (US$346.3 billion) in subscriptions for its Shanghai A-share offer, a record for a domestic initial public offering (IPO), domestic media reported yesterday.
The figure tops the previous record of 2.26 trillion yuan for China Construction Bank's initial public offering of domestic A shares this month, the Shanghai Securities News said yesterday.
Shenhua Energy, which has already listed H shares on the Hong Kong stock exchange, has said it would raise up to 66.58 billion yuan in what is expected to be the country's largest domestic IPO.
Shenhua Energy would price the offer of up to 1.8 billion local-currency A shares, or 9 percent of its expanded share capital, at between 34.99 and 36.99 yuan a share.
More large IPOs are in the pipeline as the government is taking advantage of the bull run in the domestic stock market, driven by excess liquidity, to raise funds for State-run enterprises. The Shanghai Composite Index has doubled this year.
The massive initial public offerings have sparked a squeeze in the money markets, driving near-term money rates sharply higher.
The country's stock regulator has just approved a plan by PetroChina, the country's largest oil and gas producer, to launch an A-share IPO in Shanghai. The offer could raise more than US$7 billion.
Sponsor Results:
