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From Staff Reports
China Shenhua Energy Co., China's largest coal producer, plans to raise 66.6 billion Yuan ($8.9 billion), in the biggest share sale in China in 2007.
The initial public offering will sell about 1.8 billion shares on the Shanghai market for 34.99 Yuan to 36.99 Yuan a piece, the company said in a statement. The date for the IPO hasn't been announced, though the money will finance expansion.
News of the sale sent the company's shares on the Hong Kong market up 6.6% to a record HK $46.15 by close. And more gains are expected to follow when the Shanghai IPO takes place. Bloomberg News reports that the last six companies to hold mainland IPOs have seen their shares jump an average of 250% on their first day of trading.
That's likely to be the case for PetroChina, the country's largest oil and gas producer. China's securities regulator announced yesterday (Monday) that it gave PetroChina the green light for an estimated $5 billion IPO on the Shanghai exchange. Proceeds from the IPO will expand refineries and boost output at oil fields.
Shares of PetroChina (PTR) on New York Stock Exchange leaped a cool 8.31% (or 13.9 points) on Monday following the news. In the past month, they had gained 25.26% (or 36.52 points).