Huatai's IPO under scrutiny | Shanghai Daily

The story appears on

Page A15

November 28, 2009

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Finance

Huatai's IPO under scrutiny

CHINA'S securities regulator will review on Monday Huatai Securities' application for an initial public offering in Shanghai.

The Nanjing-based brokerage plans to issue 985 million shares, or 16.98 percent of its expanded share capital, it said in a draft prospectus posted on the Website of China Securities Regulatory Commission.

Huatai will use the proceeds to boost operating capital and for investment banking, brokerage and asset management businesses, according to the prospectus.

Analysts estimated that the brokerage will raise at least 10 billion yuan (US$1.46 billion) from the share sale if the IPO price is 50 times its earnings in 2008 of 1.25 billion yuan, or 0.22 yuan per share.

The country's 10th-largest brokerage has 132 branches nationwide and net assets of 12.82 billion yuan by September 30.

Huatai is likely to be the third brokerage that launched an IPO this year after Everbright Securities Co and China Merchants Securities Co. The IPO price of Everbright was 59 times its 2008 earnings and that of China Merchants was 56.26 times.

Guosen Securities Co, Guotai Jun'an Securities, Industrial Securities and Western Securities are seeking a listing after the mainland's stock market rebounded this year.




 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend