www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

Economy

Markets

Industries

Insights

Reports

Events

First brokerage IPO since 2003 under way

(Xinhua)
Updated: 2008-06-27 15:06

China's stock regulator will review the initial public offering (IPO) application of Everbright Securities Co on Monday, the first brokerage IPO since that of CITIC Securities Co in early 2003.

Everbright planned to sell up to 520 million shares, it said in the prospectus on Friday. It didn't set a date for the offering.

The anticipated proceeds, which it didn't quantify, would be used to expand new businesses and increase its network to more than 100 outlets from 76 at present, it said.

Analysts said that Everbright's move might spur a wave of securities company IPOs, given improvements in capital market regulations and the profitability of brokerages following a stock rally in 2007.

For example, four other brokers -- China Merchants Securities, Huatai Securities, Orient Securities and Western Securities -- have also filed IPO applications with the China Securities Regulatory Commission.

Everbright reported profits for three consecutive years, one of the requirements for Chinese companies that want to conduct IPOs.

The lack of a three-year profit record held back brokers' IPOs during the five-year bear market that ended in 2006.

Nonetheless, the news of Everbright's move drove brokerage shares down in the morning session on Friday, as investors worried the IPO would drain liquidity from the market, traders said.

CITIC Securities fell 6.09 percent to 25.15 yuan ($3.59), Guoyuan Securities shed 6.52 percent to 18.36 yuan and Changjiang Securities lost 5.08 percent to 18.86 yuan.

Everbright Securities' net profit increased more than fourfold to 4.68 billion yuan in 2007, with its total assets up nearly threefold to 53.87 billion yuan by the end of 2007.