|Five prepare for public floats
Five Chinese companies said they received permission to raise a combined 2.1 billion yuan in initial public offerings, ending a year-old official freeze on public flotations.
In separate statements, the firms announced the securities regulator had approved share offers. Approvals were suspended in November 2012.
The move came after the China Securities Regulatory Commission said last month that IPOs could resume in January, AFP reports.
Analysts welcomed the move.
“Fund-raising is an indispensable part of the stock market, which will only be revitalized after embracing new companies,'' Central China Securities analyst Zhang Gang said.
Roughly 50 of the more than 760 firms lining up for share offers are expected to list on China's two stock exchanges by the end of January, a regulatory official has said.
In the first batch of five companies, only one will list on Shanghai's main board for blue chips, while four others will target boards aimed at small enterprises and technology firms on the Shenzhen stock exchange, according to their statements.
The firm which will float on the Shanghai exchange, Suzhou-based Neway Valve Co., aims to raise 839.2 million yuan for investment in production facilities, it said.
The pace of new listings on Shanghai's main board was expected to be slower, analysts said, as regulators fear new issues will drain funds away from existing shares.
`”he ChiNext [technology] board will be the main battlefield, while the pace of IPO resumption on the Shanghai market will likely be slower as the issuance of large-cap shares will put more pressure on market liquidity,'' Zhang said.