Skip to comments.China's Neway Valve (Suzhou) to be Listed On Friday, First in 14 Months
Posted on 01/16/2014 6:07:35 PM PST by RoosterRedux
Shares of China's Neway Valve (Suzhou) Co. (603699.SH) will start trading on the Shanghai Stock Exchange after raising 1.46 billion yuan ($241 million) in an initial public offering, becoming the first stock to debut on the market in over a year.
The industrial valve manufacturer's debut will be the first since November 2012, when Zhejiang Shibao Co. (002703.SZ) listed.
China imposed a moratorium on IPO markets from late 2012 as part of its efforts to boost confidence among investors who had suffered a sliding stock market for years. Part of the problem was a mispricing of shares, with new stocks surging higher initially but then performing far worse than the broader market.
After an overhaul of the market, Beijing allowed the resumption of IPOs in late 2013, and in recent weeks 52 firms have been slated for new share offerings.
In a filing to the Shanghai bourse dated Thursday, Neway said 82.5 million of its shares sold in its IPO will go public on Jan. 17.
It sold these shares at CNY17.66 each, 46.47 times its 2012 earnings, it said. The price-to-earnings multiple was 37% above the average multiple of its listed peers which was at 33.85.
Its underwriter China Securities Co. valued its shares between CNY14.86 and CNY18.57 per share.
(Excerpt) Read more at online.wsj.com ...
The bottom line of this article IMHO is that if China can prop up America by buying our Treasury Bonds...imagine what they can do to our stocks and underlying companies by buying those which they perceive as having REAL value.
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