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China Everbright Sec to list in Shanghai on Tuesday

Published 08/16/2009, 11:55 AM
Updated 08/16/2009, 11:57 AM

SHANGHAI, Aug 16 (Reuters) - - China Everbright Securities Co said on Sunday it would list its shares in Shanghai on Tuesday after raising 10.96 billion yuan ($1.60 billion) in its Shanghai initial public offering.

The company offered 520 million shares, or 15 percent of its expanded capital, at a price of 21.08 yuan each, valuing it at 72 billion yuan, or 58.56 times its 2008 earnings.

Two large IPOs that listed in Shanghai late last month by China State Construction Engineering Corp and Sichuan Expressway , the first listings in Shanghai since the lifting of a 10-month suspension of mainland IPOs, surged on their trading debuts.

But a heated rally in Shanghai shares has since stalled, with the benchmark Shanghai Composite Index shedding more than 12 percent from a 14-month high hit nearly two weeks ago, while the sizzling new share debuts late last month spurred concerns about excessive speculation.

China State Construction and Sichuan Expressway have retraced substantially from the highs hit in their debut sessions, although they remain well above their IPO prices.

Everbright Securities' IPO is only China's second by a brokerage, although several brokerages have listed via reverse takeovers of listed companies or other means.

The company is controlled by China's second-biggest financial conglomerate, Everbright Group.

Everbright hired Orient Securities to arrange its Shanghai IPO. ($1=6.834 Yuan) (Reporting by Edmund Klamann; Editing by Jon Loades-Carter)

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