China Shenhua Energy Co, the nation's largest coal producer,
yesterday said it will make an A-share offering in Shanghai, the
latest among overseas-listed companies to return to the
mainland.
The company plans to sell up to 1.8 billion yuan-denominated
shares, Shenhua said in a statement to the Hong Kong stock exchange
yesterday.
It will use the proceeds to improve its coal, power and
transport operations, and to make domestic and overseas
acquisitions, the statement said.
"The move will give domestic investors more choices to benefit
from the nation's booming energy industry," said Wang Ye, a veteran
energy analyst with CITIC Securities, adding that it will help
integrate the nation's coal industry.
"More and more Chinese coal companies have eyes on the capital
market to fuel expansion," said Wang. Last year China Coal Energy,
the nation's second-largest coal company, made an initial public
offering (IPO) in Hong Kong, raising as much as HK$13 billion.
China's securities regulators have been encouraging Chinese
firms listed overseas to return to the A-share market to stabilize
the mainland bourses. In June PetroChina, the country's largest oil
and gas company, said it will make a long-awaited A-share offering
in Shanghai, which could raise as much as 47 billion yuan.
Shenhua's A-share sale could raise up to 51 billion yuan. That
would exceed the company's HK$25.49 billion IPO in Hong Kong in
2005, a record for a coal producer.
Shenhua's stock has gained almost fourfold since making its
debut at HK$7.3 in June 2005
Shenhua gave no price range or timing for the sale. The offer is
subject to approval by shareholders and the market regulator.
In another statement to the Hong Kong stock exchange yesterday,
Shenhua said it agreed to pay 3.33 billion yuan to acquire Shenhua
Group Shenfu Dongsheng Coal Co and Shenhua Shendong Power Co from
parent Shenhua Group Corp.
The company earlier said it plans to spend 25 billion yuan
annually over the next three years to expand coal mining and power
generating capacity.
(China Daily July 4, 2007)