Reuters reported that Jingsu Hengli Highpressure Oil Cylinder Co will raise CNY 2.4 billion from an initial public offering in Shanghai after pricing its shares at the top of a narrow range as China key stock index hovers near a 31-month low.

The maker of oil cylinders joins other companies including New China Life Insurance Co, Shaanxi Coal Industry Co and China Communications Construction Co in racing to complete their IPOs before the end of the year.

The company said in a statement to the Shanghai Stock Exchange that Jiangsu Hengli will sell 105 million shares at CNY 23 a share, translating to 42.59 times 2010 earnings.

The Shanghai Composite Index ended down 1.9% at 2,331.4 points on Thursday slumping to a 31 month low. The index has fallen about 17% so far this year. China IPO market shrank 37% in the first three quarters of the year, Thomson Reuters data showed, as companies delayed or downsized their IPO plans as a deepening debt crisis in Europe rattled global stock markets.

Jiangsu Hengli plans to spend CNY 1.02 billion from the IPO proceeds on capacity expansion and the construction of a research and development facility.

Ping An Securities is lead underwriter of the deal.

(Sourced from Reuters)