Shanghai Electric Group Co, China's biggest maker of power equipment, will have its application to offer local-currency shares reviewed this week, the mainland's securities regulator said.
The listing committee will meet tomorrow to vet the domestic stock sale, the China Securities Regulatory Commission said in a notice on its Website. Shanghai Electric first announced the intended sale in August, Bloomberg News reported.
The Hong Kong-listed company plans to sell 616 million yuan-denominated shares on the Shanghai stock market, according to a preliminary prospectus.
The equipment maker is issuing the shares as part of a merger with Shanghai-listed Shanghai Power Transmission & Distribution Co, in which it holds an 84-percent stake.
Shanghai Power shareholders can choose to receive 7.32 Shanghai Electric shares or 28.05 yuan in cash for each share they hold, the prospectus said, reiterating the terms of the sale outlined last year.
In a separate statement, Shanghai Electric updated its profit forecast for 2008 to 3 billion yuan (US$440 million), 3 percent higher than 2007's net income of 2.9 billion yuan.
(Shanghai Daily July 21, 2008)
