Ten Chinese companies kicked off initial public offering (IPO) procedures Monday for listing on China's Nasdaq-style Growth Enterprise Market (GEM) at the end of October.
The 10 start-ups will complete their price inquiries and road shows by the end of this week, and begin subscription on September 25, according to the prospectus posted on the website of the Shenzhen Stock Exchange.
The companies are 10 of 13 approved by the China Securities Regulatory Commission (CSRC), in the fields of new energy, logistics, outdoor activity equipment, bio-engineering technology, software, medical equipment and medicines.
They are expected to raise 3.4 billion yuan (500 million U.S. dollars) from the listing. The remaining three will also list but their schedules are unknown
The companies were approved only a couple of days after their review meeting was held by the regulator, much more quickly than those awaiting listing on the Shanghai market, the exchange for big companies.
Review meetings for another 11 applications will be held this week.
Despite repeated risk warnings from the regulator, investors' enthusiasm is growing as the opening of the GEM nears.
"Investors should keep a sober mind and avoid any short-term strategy, which will help form reasonable prices to facilitate the long-term development of the market," said Li Daxiao, head of the research department of the Shenzhen-based Yingda Securities.
The CSRC started to accept applications of the GEM on July 26 and had received 155 applications for IPOs on the GEM as of Sept. 10. The CSRC has formally agreed to handle 149 enterprises' applications aiming to raise 33.61 billion yuan (4.92 billion U.S. dollars).
(Xinhua News Agency September 21, 2009)
