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Air China’s A-share issuing may be bad timing: analyst |
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Written by Administrator
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Thursday, 03 August 2006 |
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BEIJING, August 3 (InfoChina) – Air China (HK: 0753) has tentatively set its A-share IPO price at 2.75 –2.95 yuan per share, with a price/earning ratio of 20.07-21.53, Shanghai Securities News reported.
Though its price inquiry has been warmly received by the market, some analysts say an airline company choosing to land in A-share market right now may be a bad choice.
Though Air China is the sole profit-making globally listed airlines in China, its appeal to domestic investors may not be as large as those newly issued or to-be-issued large-cap companies as Bank of China, Daqin Railway, etc.
QFII (Qualified Foreign Institutional Investor) and domestic securities companies are the most active bidders to buy the A-shares of Air China. Of the 4 QFII and 9 securities company bidders, two QFII and four securities companies offered a price of 3.05-3.30 yuan per share.
The company is to issue no more than 2.7 billion A-shares, of which 350 million will be allotted to strategic buyers and 50% of the remainder will be sold online and 50% is to be sold off-line.
In light of the issue scale and price, Air China’s online and off-line application ceiling for the issue will reach 3.466 billion yuan respectively.
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China Stock News