SHANGHAI Jan 15 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
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