Shenhua Energy to launch IPO

Hong Kong-listed China Shenhua Energy announced in late June its plans to issue RMB1.8 billion (US$237 million) denominated A shares in Shanghai in its initial public offering (IPO), which will raise a projected US$6.7 billion for its expansion plans. The share value of China Shenhuas H shares rose sharply by 6.59% to HK$29.10 (US$3.72) soon after the announcement was made. The company intends to use the funds to expand its coal, power and transportation operations and acquisitions at home and overseas. This move makes Shenhua Energy the latest mainland company to return to the mainland stock exchange in the recent stream of Hong Kong-listed Chinese companies seeking to be listed in Shanghai. (July 4, 2007)