Xinchen China to raise US$113 million in IPO

Xinchen China Power, a manufacturer of light-duty petrol and diesel engines, plans to raise US$113 million through a Hong Kong initial public offering to expand its production capacity.
Xinchen, which is controlled by Hong Kong-listed Brilliance China Automotive, operates a joint venture with German carmaker BMW.
It is offering 313.4 million shares at an indicative price range between of HK$2.20 (US$0.28) and HK$2.80 (US$0.36) each, representing a price-earnings ratio of seven to nine times based on forecast earnings for this year.
Under a greenshoe provision, which would allow the underwriters to sell more shares to meet demand, proceeds could rise to as much as US$130 million. (February 28, 2013)