China Glass aims for $207m IPO to fund production boost

China Glass Holdings, which is raising up to HK$207 million through an initial public offering, plans to use 93.5 percent of proceeds to add a production line to boost annual capacity by two-thirds, said the company and fund managers.

China Glass, which has an annual production capacity of 748,000 tonnes hopes the new line will add a further 548,000 tonnes.

It also plans to upgrade an existing line next year to make ultra-thin glass of 2 millimeters or less for the automotive and electronics industries.

The firm, which makes glass for buildings and cars, aims to sell 90 million new shares at between HK$1.50 and HK$2.30 each, or 8.83 to 13.54 times its 2004 earnings of 65 million yuan (HK$61.14 million). Bigger mainland rival Zhejiang Glass trades at 5.9 times 2004 earnings.

"The price is not attractive. If the price is set 10 times earnings or below, it will be acceptable," said Charles Chu, senior investment services manager of Pegasus Fund Managers.

Chu is also concerned the firm's earnings may be affected by the central government's austerity measures to curb property speculation and overinvestment in the auto industries.

Still, China Glass has bagged London-listed Pilkington, the world's biggest windshield maker, as an investor, which will buy about 40 percent of the shares, or a 9.9 percent stake, for up to HK$83 million.

To sweeten its offer China Glass plans to pay about 30 percent of profits this year as dividends to shareholders.

600450 China Glass aims for $207m IPO to fund production boost
Date: 13 June 2005

See more from these topics:

Others also read

LandGlass is going to attend FC 2016 to share its cutting-edge LandVac tempered vacuum insulated glass with the professionals in the glass industry.
For the first time, LandGlass presented both of its core products.
AluK will showcase its superior, top-level products, and share its expertise in the field of windows and doors.
China Ginza Tokyo is a luxurious and unique building expressing the spirit of Chanel through a façade generating images and acting as lighting for the building.
Moen Glass PTY LTD, based in Victoria, Australia, was incorporated in 1984. It is a family owned manufacturing company, dedicated to servicing the glass and window industries throughout Australia.
China’s largest glass manufacturer is planning to raise its investment in Malaysia by 100% to US$400mil (RM1.6bil) and to set up its overseas headquarters in Kuala Lumpur, group chairman Ge Wenyao told visiting Malaysian minister Datuk Seri Ong Ka Chuan.

From industry

Add new comment