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Pacific Insurance launches online offers

By Mao Lijun (China Daily)
Updated: 2007-12-15 10:20

New stocks Pacific Insurance, Goldwind and Liaoning Publishing and Media opened competing online subscriptions in Shanghai on Friday.

China Pacific Insurance (Group) Co, the country's second-largest property insurer, said it would issue one billion A shares at 30 yuan apiece.

The insurer could raise up to 30 billion yuan (US$4.08 billion) in the initial public offering, it said in a statement to the Shanghai Stock Exchange.

Goldwind Science & Technology Co, the country's largest wind power equipment manufacturer, will issue 50 million A shares at 36 yuan per share.

Meanwhile, Liaoning Publishing and Media Co will issue 140 million new shares at 4.64 yuan apiece.

Large-cap stock Pacific Insurance is likely to be the popular investor choice with a bigger share issue than Goldwind, but the energy equipment company is likely to be more profitable, analysts said.

"Shares in Goldwind are expected to increase from the offer price to more than 100 yuan apiece when it makes its debut in Shanghai," said Chen Yicong, a power equipment analyst with Southwest Securities.

Goldwind posted a net profit of 319.6 million yuan in 2006, with earnings per share of 0.639 yuan. This year it expects net profit of 625 million yuan, with earnings per share of 1.25 yuan.

"Pacific Insurance is also expected to perform well and its price may rise to 50 yuan and hover around 45 to 50 yuan on its first day in Shanghai," Chen said.

The insurer expects a net profit of 6.45 billion yuan this year with diluted earnings per A share estimated at 0.84 yuan.

Pacific Insurance said it would issue no more than 900 million H shares to raise 27 billion yuan on the Hong Kong stock exchange after its A-share listing. But it said it would invite several strategic investors before it goes public in Hong Kong.

Goldwind held 33.29 percent of the nation's wind turbine industry in 2006, while international rivals Vestas, Gamesa and GE Wind took 23.55 percent, 15.89 percent and 12.68 percent of the market, according to 2006 figures.


(For more biz stories, please visit Industry Updates)



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