China plans first IPO in a year | india | Hindustan Times
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China plans first IPO in a year

China unveiled its first initial public offering on Thursday after lifting a year-long freeze.

india Updated: May 31, 2006 11:59 IST

China unveiled its first initial public offering on Thursday after lifting a year-long freeze, kicking off a string of IPOs that would see its top companies, now listed abroad, issue equity in their home market.

The end of the ban will allow companies such as Air China, China Mobile (Hong Kong) Ltd and PetroChina Corp. to return home to raise capital. Most successful Chinese firms are listed in Hong Kong.

Some analysts expect about 100 billion yuan ($12.5 billion) of new equity to hit Shanghai and Shenzhen markets in the next few months, against their total capitalisation of around 4.2 trillion yuan.

The first IPO since offerings were suspended in May 2005 as an emergency step to support the bourses will be China CAMC Engineering Co Ltd, an engineering contractor. The IPO is expected to kick off on June 5, floating 60 million shares on the Shenzhen bourse, the official China Securities Journal said.