China Explosives Maker Prices IPO as Share Sales ResumeBloomberg News
China has allowed the first pricing of an initial public offering in five months after regulators froze share sales earlier this year following a stock market rout.
Hubei Kailong Chemical Group Co., a maker of industrial explosives, plans to raise 598.6 million yuan ($94 million) by selling nearly 20.9 million shares at 28.68 yuan apiece in Shenzhen, according to a prospectus posted on the Shenzhen stock exchange’s website.
The company, based in Jingmen, Hubei province, had planned to raise 597 million yuan by selling the shares at 28.61 yuan apiece, according to an original prospectus before the IPO freeze.
The China Securities Regulatory Commission said earlier this month that it had restarted IPOs for five companies to list on the Shanghai stock exchange and five in Shenzhen. The regulator is allowing companies to start selling new shares again as China’s stock market recovers following a $5 trillion rout.
— With assistance by Ludi Wang, and Gregory Turk