Business

More Chinese companies line up for Shanghai IPOs

A general view shows the Bund near The Peninsula hotel in Shanghai in this file photo of June 30, 2009. More Chinese companies are lining up for Shanghai IPOs. – Reuters picA general view shows the Bund near The Peninsula hotel in Shanghai in this file photo of June 30, 2009. More Chinese companies are lining up for Shanghai IPOs. – Reuters picSHANGHAI, April 25 – Chinese coal miner Huaibei Mining Co and tube maker Golden Dragon Precise Copper Tube Group Inc are planning to raise more than US$1.5 billion (RM4.59 billion) in total through listings on the Shanghai stock exchange, as the market shows signs of stabilising.

Huaibei Mining Co, based in the eastern province of Anhui, plans to raise 6.1 billion yuan (RM2.96 billion) in an initial public offering, it said in a prospectus, potentially making it the biggest deal in mainland China so far this year.

Separately, Golden Dragon Precise Copper Tube Group Inc said it aims to raise 3.5 billion yuan in a Shanghai IPO.

Huaibei Mining’s IPO would potentially be the biggest this year, overtaking the offering by China Communications Construction , which raised 5 billion yuan after downsizing its share sale by 75 per cent due to weak stock market conditions.

China’s stock market, which fell 22 per cent last year, has rebounded 9 per cent so far this year on expectations that the government will further loosen monetary policy to bolster economic growth. – Reuters

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