Shenhua IPO sets new mainland record at $8.9bn
27 September 2007
China Shenhua Energy, China's biggest integrated coal producer by output, raised US$8.86 billion from its initial public offering on the Shanghai Stock Exchange, the mainland's largest IPO to date, the Wall Street Journal reported. The 1.8 billion new A-shares, priced at US$4.92 each, account for 9.05% of the company's enlarged share capital. Seventy percent of the listing, or 1.26 billion shares, was sold to retail investors, more than the originally planned 60%. Analysts expect Shenhua Energy's net profit to rise more than 20% annually in the next three years, given the country's strong demand for energy. Before Shenhua Energy's IPO, China Construction Bank's domestic offering was the largest on record, raising US$7.72 billion from A-shares earlier this month.