China CAMC Engineering Co., the first Chinese firm to launch an initial public offering (IPO) after a year's suspension for State share reform, said it has priced its initial public offering at 7.4 yuan (92.5 US cents) per share.

The price is at the top end of the price offering range of 6.17 and 7.4 yuan.

Total demand for the shares by institutional investors who offered the price of 7.4 yuan per share stands at 1.275 billion shares, compared with only 60 million shares the company planned to issue on the Shenzhen Stock Exchange, the company said in a statement.

The firm is sponsored by state-owned enterprises specializing in international agricultural engineering projects and machinery,

The company said its shares would be available on the stock market from June 5.

China suspended IPOs early last year allowed for a comprehensive reform program to make non-tradable shares tradable on the market.

In the past, only about a third of shares of domestically listed companies were floated on the market while the remainder were retained by the state to ensure government control of the state-run sector.

Experts said the non-tradable shares, together with poor corporate governance, were to blame for the lackluster performance of China's stock markets during the 2001-2005 period, despite the country's booming economy.

Source: Xinhua