China Shenhua Energy, the country's largest coal producer, has attracted a record 2.67 trillion yuan (US$355.6 billion) in subscriptions for its A-share initial public offering (IPO), the China Securities Journal reported Wednesday.
The figure exceeded the 2.26 trillion yuan received by China Construction Bank (CCB), the country's second largest lender by assets, around a week ago.
Analysts said the investors chased Shenhua shares for almost certain price jump on debut and on expectation of rosy corporate earnings boosted by rising coal prices.
The substantial subscriptions would likely to make the coal firm to raise 66.58 billion yuan by selling the 1.8 billion shares at 36.99 yuan, the higher end of the price range between 34.99 yuan and 36.99 yuan.
The IPO size of China Shenhua would then exceed that of the CCB, which raised 58.05 billion yuan in its Shanghai IPO, to become the largest share sale on the Chinese mainland.
Chinese government has been encouraging the red-chip companies to launch domestic IPOs to increase equities supply in a bid to mop up excess liquidity and help cool the stock market where the key index has more than doubled this year.
The company has said it would use the proceeds to build or upgrade its coal, power and transportation systems and purchase strategic assets.
By the end of this June, it had proven reserves of 5.99 billion metric tons mainly in northern China's Shanxi Province and Inner Mongolia Autonomous Region.
(Xinhua News Agency September 26, 2007)
