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XD Electric plans to raise $1.13b through IPO

(Agencies)
Updated: 2010-01-08 15:30

China XD Electric Co, the nation's biggest maker of electricity transmission and distribution equipment, plans to raise about 7.72 billion yuan ($1.13 billion) through an initial public offering (IPO) in Shanghai.

The Xi'an-based company will sell as many as 1.307 billion shares, or about 30 percent of its total shares, according to a filing to the Shanghai Stock Exchange. XD plans to sell about 40 percent of the stock available to institutional investors through an offline tranche from Jan 18, and the remaining 60 percent will be offered to all investors on Jan 19.

The share sale will test investor demand as the regulator approves more IPOs after it resumed offerings in July. China CNR Corp, the nation's biggest maker of rail and subway cars, rose 2.3 percent when the shares started trading in Shanghai last month, the country's weakest debut in 2009. The benchmark Shanghai Composite Index has fallen 2.6 percent this year.

XD, which plans to use the proceeds to expand production, will start taking offers from Jan 11 and set a price range on Jan 15. It hasn't said when the shares will start trading. The company won approval from the regulator's listing panel on Dec 4.

XD earned 406.8 million yuan in the first six months of 2009. It made 1 billion yuan net income in 2008, 66.5 percent more than a year earlier. China XD Group Co, a State-owned company overseen by the State-Owned Asset Supervision and Administration Commission, will own 58.1 percent of the stake after the share sale, according to the filing.

China International Capital Corp is helping arrange the share sale.