October 08, 2008

Shenhua Energy\'s IPO on Shanghai approved

It is Shenhua Energy Co Ltd’s proposal for listing on Shanghai Stock Exchange has been approved by China Securities Regulatory Commission.

China Shenhua Energy Co Ltd has already listed on Hong Kong Stock Exchange and now it seeks to raise a maximum of CNY 1.8 billion funds from its domestic share offering. The shares will be the CNY denominated A shares, which can only trade among domestic investors. The company plans to raise as much as CNY 70 billion by issuing 1.8 billion shares which will exceed the total proceeds of CNY 58 billion from China Construction Bank Shanghai IPO.

China Shenhua Energy Co Ltd said the proceeds would be used to upgrade technology and facilities as well as to expand its production capacity.

China International Capital Corp and China Galaxy Securities Company are the major underwriters of this issue.