Stocks News
- Hunan Nonferrous plans A-share listing
Date: 8-Oct-2007 Sources: (Shenzhen Daily)
HUNAN Nonferrous Metals Corp., China's top producer of zinc, plans to raise about 10 billion yuan (US$1.33 billion) with a sale of A shares later this year or in the first quarter of 2008, a source familiar with the deal said Thursday.
Hunan Nonferrous is the latest in a string of State-run enterprises with a listing in Hong Kong to plan an initial public offering (IPO) on the mainland.
Demand for A shares has driven the benchmark Shanghai index up by more than 100 percent this year.
Mainland regulators have stepped up approvals for large IPOs in an apparent effort to cool the stock market by increasing the supply of equity to meet raging demand for shares.
PetroChina, the country's largest oil and gas producer, has won approval from stock regulator to launch an A-share IPO in Shanghai. The offer could raise more than US$7 billion.
Separately, China Shenhua Energy, the country's biggest coal producer, raised 66.58 billion yuan in China's largest domestic IPO, attracting a record 2.66 trillion yuan in subscriptions for its Shanghai A-share offer.
Hunan Nonferrous's deal is being handled by UBS, which is one of the very few global investment banks, along with Goldman Sachs, with a license to underwrite domestic Chinese share sales.
Hunan Nonferrous could not be immediately reached for comment.
The company's Hong Kong-listed shares have surged 67 percent so far this year, outpacing a 62 percent rise in the index of mainland companies listed in Hong Kong. It has jumped more than fourfold since its IPO in March last year.
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