Shares in China Coal Energy, the country's second largest coal
producer, closed 31.91 percent higher on its debut on Shanghai
Stock Exchange Friday.
Its stocks opened at 24 yuan (3.3 U.S. dollars), up 42.6 percent
from its initial public offering (IPO) price of 16.83 yuan. The
opening price, however, was lower than market expectations of 25 to
32 yuan.
Its share prices retreated to close at 22.20 yuan as the key
Shanghai Composite fell 1.43 percent to 4,320.77 Friday, the lowest
closing in six months.
The coal giant has issued in Shanghai 1.525 billion A shares,
representing 11.51 percent of its outstanding capital. The share
sale was 121 times oversubscribed as it received 3.12 trillion yuan
(434 billion U.S. dollars) in orders.
The company has raised 25.67 billion yuan (3.6 billion U.S.
dollars) through the IPO, the eighth largest A share listing in
history.
It said it would use the proceeds for the construction of major
coal projects in Inner Mongolia Autonomous Region and Heilongjiang
Province, and to supplement operating capital.
Analysts forecast the company's earnings per share would stand
at 0.43 yuan for last year, 0.51 yuan this year, and 0.65 yuan in
2009.
China Coal Energy was exclusively initiated by the China
National Coal Group Corp. in August 2006 and was listed on the Hong
Kong Stock Exchange in December 2006. Its assets were valued at
55.29 billion yuan with net assets of 31.88 billion yuan by the end
of June. Operating turnover reached 16.93 billion yuan and net
profits hit 2.44 billion yuan in the first half of 2007.
(Xinhua News Agency February 2, 2008)
