Zhejiang Supor Cookware Co Ltd, one of China's largest cookware producers, is to launch an initial public offering (IPO) on August 3.

Approved by China Securities Regulatory Commission, the company will issue 34 million A shares to secondary market investors and will be listed at the Shenzhen Stock Exchange, according to its prospectus published yesterday.

upor's share is priced at 12.21 yuan (US$1.27) per share, with a price/earnings ratio of 16.19.

The firm is expected to raise more than 394 million yuan (US$47.58 million) through the IPO, which would be used in six projects to expand and upgrade its production capacity and develop an international sales network.

"Completely relying on the company's revenue for reinvestment means Supor's further development could not be afforded," the company's Chairman Su Xianze said.

The company set an ambitious goal last year - achieving sales volume of 2 billion yuan (US$241.5 million), including export sales of US$80 million, by the year 2006.

Supor is also expected to become one of the top three cookware makers in the world at that time.

"With the support from the capital market, the company will grow faster," Su said.

Established in 1998, Supor's annual production reached 14.5 million sets of various cookwares last year from 7.5 million sets in 2001.

The sales volume of the company totalled 837 million yuan (US$101 million) in 2003.

However, the company's business this year will likely be affected by the Teflon scare, industry analysts said.

Earlier this month, the US Environmental Protection Agency alleged that chemical giant DuPont had failed to report test results of the synthetic chemical Perfluorooctanoic Acid.

The allegation fueled worries that using Teflon-coated pans might increase the risk of cancer. Supor and Aishida hold 80 per cent of the domestic non-stick pans market.

Source: China Daily