China Green IPO gets positive response

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Last updated at: (Beijing Time) Thursday, January 08, 2004

China Green IPO gets positive response

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The warm outlook on the Chinese economy has overseas investors zealous for the initial public offering (IPO) of China Green (Holdings) Ltd, a vegetable and fruit processor in East China's Fujian Province.

The company kicked off the IPO last week to issue a total of 150 million shares, which will raise HK$192 million (US$24.6 million) to expand its production lines and facilities, company sources said.

The retail portion of the offering, which was made available for subscription last Wednesday and ended on Tuesday, was 1,000 times oversubscribed.

It is expected to be the first company from the mainland to go public in Hong Kong this year, and also as the first listing on Hong Kong's main board. Trading of the shares is scheduled for next Tuesday.

Analysts say strong demand in the Hong Kong market contributed to the oversubscription as has China's positive economic outlook.

The Hong Kong stock market staged a strong rally over the past week on expectations of improved local economic growth.

The benchmark Hang Seng Index ended 121.36 points higher at 13,157.68, the highest close since July 2001.

"The timing for China Green's offer is good and the IPO price, at HK$1.28 per share, is cheap too," said Zheng Qi, an analyst with China Securities Co in Beijing.

China expects its economy grew to 8 per cent in 2003 and most economists predict continuing momentum for 2004.

China Life Insurance Co Ltd, the leading life insurer in the mainland, raised US$3.46 billion from an IPO that was 172 times oversubscribed in the public offering in December.

Another company that did well was the Chinese mining firm Fujian Zijin Mining Industry Co Ltd, also listed in December, which also received an enthusiastic response and was 744 times oversubscribed in the retail portion.

The future of the organic food industry is rosy as an increasing number of Chinese pay more attention to food safety, as reflected in sales., said Zheng.

Established in 1998 in Fujian Province, China Green is engaged in vegetable and fruit processing and distribution. It is largely export-oriented, with the Japanese market contributing 80 per cent to the company's total turnover.

Company sources said its processing factories are mostly located in East China's Fujian and Zhejiang provinces, which facilitate easy access to overseas markets.

China Green IPO gets positive response

The warm outlook on the Chinese economy has overseas investors zealous for the initial public offering (IPO) of China Green (Holdings) Ltd, a vegetable and fruit processor in East China's Fujian Province.

The company kicked off the IPO last week to issue a total of 150 million shares, which will raise HK$192 million (US$24.6 million) to expand its production lines and facilities, company sources said.

The retail portion of the offering, which was made available for subscription last Wednesday and ended on Tuesday, was 1,000 times oversubscribed.

It is expected to be the first company from the mainland to go public in Hong Kong this year, and also as the first listing on Hong Kong's main board. Trading of the shares is scheduled for next Tuesday.

Analysts say strong demand in the Hong Kong market contributed to the oversubscription as has China's positive economic outlook.

The Hong Kong stock market staged a strong rally over the past week on expectations of improved local economic growth.

The benchmark Hang Seng Index ended 121.36 points higher at 13,157.68, the highest close since July 2001.

"The timing for China Green's offer is good and the IPO price, at HK$1.28 per share, is cheap too," said Zheng Qi, an analyst with China Securities Co in Beijing.

China expects its economy grew to 8 per cent in 2003 and most economists predict continuing momentum for 2004.

China Life Insurance Co Ltd, the leading life insurer in the mainland, raised US$3.46 billion from an IPO that was 172 times oversubscribed in the public offering in December.

Another company that did well was the Chinese mining firm Fujian Zijin Mining Industry Co Ltd, also listed in December, which also received an enthusiastic response and was 744 times oversubscribed in the retail portion.

The future of the organic food industry is rosy as an increasing number of Chinese pay more attention to food safety, as reflected in sales., said Zheng.

Established in 1998 in Fujian Province, China Green is engaged in vegetable and fruit processing and distribution. It is largely export-oriented, with the Japanese market contributing 80 per cent to the company's total turnover.

Company sources said its processing factories are mostly located in East China's Fujian and Zhejiang provinces, which facilitate easy access to overseas markets.

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