Tuesday, September 25th, 2007
China Shenhua Plans an $8.9 Billion Shanghai IPO; PetroChina a $5 billion Shanghai IPO
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).
Jim Rogers: China’s Expansion Depends on Water
Oil isn’t China’s most precious resource. China must spend $162 billion in the next five years to clean up its polluted rivers-as nearly 40% of them are undrinkable. "China has a huge water problem," Legendary investor Jim Rogers says. "…If they don’t solve it, or if they don’t solve it in time, then China has failed." Find out which six global water treatment powerhouses are set to make “liquid profits.”
