June 25, 2009 / 5:30 PM / 9 years ago

China's first IPO in 10 months details share issue

BEIJING (Reuters) - Drugmaker Guilin Sanjin Pharmaceutical Co has raised the amount it expects to raise in China’s first stock IPO in 10 months by 44 percent to 910 million yuan ($133 million).

The traditional Chinese medicine maker won initial approval from the China Securities Regulatory Commission (CSRC) for an IPO in June last year, and recently won the final go-ahead with authorities looking to end a drought of new companies on the nation’s share markets.

Guilin Sanjin said it will price its IPO at 19.8 yuan per share, expecting to raise the 910 million yuan when it issues 46 million shares, the Xinhua news agency reported on Thursday.

That is higher than the 634 million yuan the company flagged in a statement earlier this month.

“The latest statement said the other 276 million yuan would be used to supplement cash flow for construction and production projects, and to repay bank loans if necessary,” Xinhua said.

The report also said analysts said the “issue price was above market expectations.”

The expected restart of IPOs hit sentiment in China’s stock market when the government announced on May 22 it was revising IPO rules, paving the way for a resumption of listings after last year’s suspension.

But worries that the news would stifle a rally in the benchmark Shanghai Composite Index .SSEC proved unfounded.

On Thursday, the Shanghai Composite Index .SSEC ended up 2.747 points at 2,925.046, after hitting a new intraday high for 2009 at 2,946.898.

(Reporting by Chris Buckley; Editing by Dan Lalor)

$1 = 6.83 yuan

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