Stocks News
- Zhejiang Jiuli plans Shenzhen IPO
Date: 31-Jul-2007 Sources: (Shenzhen Daily)
ZHEJIANG Jiuli Group Co. is planning to raise about 400 million yuan (US$52.94 million) via an initial public offering (IPO) as the stainless steel specialist seeks to boost production.
Jiuli, which makes stainless steel tube, plans to list on the small and medium-sized enterprise board of the Shenzhen Stock Exchange, the smaller of the country's two national stock bourses, said sources familiar with the situation yesterday.
Privately held Jiuli, based in the eastern province of Zhejiang, whose clients include Asia's top oil refiner Sinopec Corp., had hired investment banks to sponsor its proposed IPO expected in early 2008, but had yet to apply to the securities regulator, the sources said.
Jiuli was once engaged in talks with some potential private equity investors, the sources said, declining to name any potential buyers but adding the company eventually decided to go public amid a bullish domestic stock markets.
'For money, it can either sell a stake to private equity funds or go public,'said one of the sources who declined to be identified.
'Since stock markets are very bullish and the government is encouraging good private companies to list domestically, an IPO should be a better option now,'he said, adding the company would use part of IPO proceeds to boost production.
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