Shaanxi Coal cuts IPO plans by three quarters, aims for $660 mln
SHANGHAI Jan 15 (Reuters) - Shaanxi Coal Industry Co Ltd aims to raise up to 4 billion yuan ($660 million) via a Shanghai listing, after pricing the deal at relatively modest valuations and slashing its size from its original plan by three quarters.
Shaanxi Coal aims to sell up to 1 billion shares at 4 yuan a piece, the company said in a statement posted on the Shanghai stock exchange website late on Wednesday.
The IPO was valued at a price to earnings ratio of 6.23 times its 2012 profit on a diluted basis, compared with an average of 10.31 times for mining firms listed on the Shanghai stock exchange.
The China Securities Regulatory Commission said on Sunday it would step up supervision of IPOs, which were resumed earlier this month after a hiatus of more than a year, by requiring issuers to warn investors of risks if the IPO is priced higher than its industry competitors. Since then, companies have been selling shares at a discount despite firm demand.
The size of the Shaanxi IPO was reduced by around three-quarters from the company's original fund-raising target of 17.2 billion yuan, previously announced in 2011.
Shaanxi Coal, which will trade under the ticker, will announce the results of subscriptions on Jan. 20.
China Securities, CICC and BOC International are the underwriters for the IPO. ($1 = 6.0460 Chinese yuan) (Reporting by Pete Sweeney and Samuel Shen; Editing by Edwina Gibbs)