The Avanti Group Comments on Shaanxi Coal IPO Listing
The Avanti Group comments on the third largest coal producer in China, Shaanxi Coal Industry Co., as they are set to IPO this month in the largest public offering on the mainland in two years.
- (1888PressRelease) January 26, 2014 - The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor's attention to China's securities regulators approval of the first in 50 company IPO listings.
The IPO market in mainland China has become used to playing second fiddle to the numerous and large yearly offerings from Hong Kong (SAR). This month however the first IPO to be conducted in China this year following a securities crack down which was lifted on November 30 giving way to the first approval in over one year. The nation's third largest coal producer, Shaanxi Coal Industry Co will debut publicly on January 17 raising as much as $1.6 billion.
Trailing only China Shenhua Energy Co and China Energy Co in size, Shaanxi provides coal for China's power generation and steel refining industry. China, which was the world's largest market for IPOs in 2012, raising in excess of $71 billion that year, has been without a single public listing until Shaanxi's later in the month when the company will offer 1 billion class A shares on the Shanghai Stock Exchange.
"This is a good opportunity for China to show investors that they still are a very viable target for IPO investment. The 10% of Shaanxi on offer is competitively valued and is in an industry that benefits from each and every expansion of Chinese industrial expansion, so while there may be period of down turn as we have seen recently, ultimately values will trend upwards," said Martin Blanke Equity Research Specialist at The Avanti Group.
Operating in China's western Shaanxi province, the coal producer will remain under the control of majority investor the provincial, Shaanxi Coal and Chemical Group after listing. Shaanxi was one of six companies who sought and were granted the permission to list in December 2013, the first applications granted for over a year to do so. With changes in IPO regulation set to be introduced to mirror U.S style legislation, there are 50 companies expected to be ready to list by the end of January.
"As China begins to introduce new legislation in regards to IPO requirements, it's expected to increase transparency and simplify investing along the same lines as in the U.S, this will hopefully make the market place a much more comfortable and easy to understand environment for western investors to participate in," concluded Martin Blanke Equity Research Specialist at The Avanti Group.
The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.
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