Huatai woos investors for IPO
Updated: 2007-01-18 16:16
The Jiangsu Province-based broker has also decided to wait till 2009 before selling shares because under regulatory requirements it needs to post a profit this year and the next in order to do so, people familiar with the matter said.
China's stock regulator insists that an IPO applicant must be profitable for three consecutive years. Huatai is set to post a profit of more than 1 billion yuan (US$128 million) for last year after a loss in 2005.
To facilitate the IPO, Huatai, indirectly held by the Jiangsu government, intends to let existing shareholders bolster their stakes as well as woo new strategic investors, the sources said.
The broker, set up in May 1991 with a registered capital of 10 million yuan, has boosted its capital five times since then to 2.2 billion yuan and stands out as one of the nation's 10 or so first-tier securities firms.
Huatai last Thursday issued a statement to quell market speculation that it would seek a back-door listing via taking over a publicly traded company. "We don't have an immediate plan for a back-door listing and haven't contacted big shareholders at any listed firm," the statement said.
Eager to expand, Huatai set up its Hong Kong presence in August after buying 49 percent in Great Wall Futures Brokerage Co in July to be its biggest shareholder.
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