SHANGHAI Jan 20 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
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