FRANKFURT (Reuters) - Home appliances maker Qingdao Haier Co Ltd 600690.SS on Friday announced that it would move ahead with plans to sell up to 400 million so-called D-shares in Frankfurt, becoming the first Chinese company to do so.
The company said the offering would begin around Oct. 15. At Haier’s share price in Shanghai, a listing of 400 million shares would be valued at about $964 million. The shares will be denominated in euros.
“Entering into European capital markets is an important part of Qingdao Haier’s globalisation strategy,” Haier said.
The Haier listing will kick off the D-share project - D is for Deutschland - on the infant China Europe International Exchange based in Frankfurt.
Reuters reported on Haier’s intention to list earlier this year, and the company announced its plans in April.
CEINEX was set up with the blessing of Beijing and Berlin in 2015 and is mostly owned by Shanghai Stock Exchange (SSE) and Deutsche Boerse DB1Gn.DE.
The Haier listing “is an important step for CEINEX on its way to establish its platform as a link between European and Chinese financial markets”, Ceinex co-chief executive Han Chen said.
The establishment of D-Shares marks the latest in a series of gradual moves by China to increase foreign engagement with its companies, albeit often at a distance.
D-shares join a long list of offshore Chinese forms of equity including H-shares and red-chips in Hong Kong, S-chips in Singapore and N-shares in New York.
Deutsche Bank DBKGn.DE is acting as Sole Global Coordinator and Joint Bookrunner, Haier said.
Reporting by Tom Sims; editing by Thomas Seythal and Maria Sheahan
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