香港码报图库今期_香港码报图库今期官网_Coal transporting firm plans 15b
Daqin will start selling shares for between 4.58 yuan and 5 yuan each, the company, based in the northern city of Datong, said in a statement. The company will sell no more than 5 billion shares, the statement said.
The proceeds of the IPO will be used to expand capacity in a country whose economy jumped 11.3 percent in the second quarter and relies on coal for two-thirds of its electricity needs. The IPO will test whether the appetite of Chinese investors for stock has waned since the Shanghai share sale by Bank of China Ltd last month drew bids for 33 times the amount of stock offered, Bloomberg News reported.
"The stock is worth investing in because as a monopoly on the country's major coal transport line, the company has access to resources that its rivals don't have," said Yu Hui, who helps manage 7 billion yuan at Bank of Communications Schroder Fund Management Co in Shanghai. "The downside of investing in the company is its limited growth potential as it can only build up capacity gradually."
Daqin transported more than 90 percent of coal produced in the country's major coal mine areas in northern Shanxi Province and western Inner Mongolia between 803 and 805. Freight traffic on China's railway network has increased by more than 80 percent since 1990, according to the World Bank. China is the world's biggest coal producer.
The 5 billion shares represent 33.45 percent of the company's total capital. The railway operator's net income rose 49 percent last year to 3.56 billion yuan on an 82 percent surge in revenue to 13.1 billion yuan, it said.
The highest price is 18.2 times Daqin's reported 805 profit, less than the average 29 times price earnings ratio for shares on the Shanghai stock market.
Guanghsen Railway Co, China's only publicly traded railway, has a price to earnings ratio of 20.4 and Canadian Pacific Railway Ltd, which hauls minerals and cargo from Montreal to Vancouver, trades at 15 times 805 earnings, according to Bloomberg analytics.
Daqin moved 240 million tons of coal last year out of its total cargo traffic of 290 million tons, it said. The company also started a passenger business last year, which made up 4.2 percent of its total revenue.
Daqin, set up in October 804, is currently 95 percent owned by the state-owned Taiyuan Railway Administration. China Huaneng Group, the nation's biggest power producer, also holds about a 1 percent stake in the railway operator.