Shaanxi Coal raises $661 mln in China's largest IPO since 2012
SHANGHAI Jan 20 (Reuters) - Shaanxi Coal Industry Co Ltd has raised 4 billion yuan ($661 million) in the largest listing in mainland China since authorities ended a 14-month freeze on the IPO market late last year.
Companies' fund raising hopes have been hit after China's stock market watchdog said last week it would police IPO pricing behaviour, concerned about a return to overpricing.
Shaanxi Coal scaled back its fund raising by about 60 percent from a target set this month, which in turn had been cut from initial hopes of 17.2 billion yuan in 2011, before China suspended the IPO market to carry out reforms.
Shaanxi Coal, which will become China's third-largest listed coal miner by volume, sold 1 billion shares at 4 yuan each, it said in a statement to the Shanghai stock exchange. That represents 10 percent of its outstanding shares.
The online part of the sale, which targeted mainly retail investors, attracted interest amounting to about 20.53 times the amount on offer, it said, reflecting pent-up demand for big companies.
Shaanxi Coal's IPO price gave it 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.
Shaanxi Coal will trade under the Reuters Instrument Code . China Securities, CICC and BOC International are the underwriters for the IPO. ($1 = 6.0502 Chinese yuan) (Reporting by Shanghai Newsroom and Kazunori Takada; editing by Tom Pfeiffer)
- Still no sign of Malaysian jet lost in 'unprecedented mystery' |
- Timeline: The search for missing Malaysian jet
- Missing Malaysian jet may have disintegrated in mid-air: source |
- Exclusive: Malaysia plane probe narrows on mid-air disintegration - source
- Mexico kills drug kingpin reported dead years ago: official