The share price of China Coal Energy, the country's second
largest coal producer, jumped more than 40 percent in a strong
debut in Shanghai on Friday amid volatile trading.
Trading of its shares started at 24 yuan (3.3 U.S. dollars), up
42.6 percent from its initial public offering (IPO) price of 16.83
yuan. However, it was lower than market expectations of 25 to 32
yuan per share.
Its share price dropped after trading started and fluctuated
around 22 yuan per share, after peaking at 24.89 yuan.
It ended the morning trade at 21.62 yuan per share, down from
its starting price but up 28.46 percent from its IPO price.
In the meantime, the benchmark Shanghai Composite Index closed
the morning session at 4,227.95 points, losing 155.45 points or
down 3.55 percent from the previous close.
The company would issue up to 1.525 billion A shares on the
Shanghai Stock Exchange as planned. This represented 11.51 percent
of the company's capitalization after the IPO.
About 1.182 billion shares offered through online subscription
began trading on Friday, while the other 343 million shares would
be restricted from trading for three months. Online subscriptions
set a record of 2.74 trillion yuan.
The capital would be used for the construction of major coal
projects in Inner Mongolia Autonomous Region and Heilongjiang
Province, and to supplement operating capital, according to the
company.
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 1, 2008)
