19 Jan 2010 13:01

Anhui Xinhua Media launches IPO on SSE

Shanghai. January 19. INTERFAX-CHINA - Publishing firm Anhui Xinhua Media Ltd. made an initial public offering (IPO) on the Shanghai Stock Exchange on Jan. 18, the company announced on the same day.

According to the announcement, the company raised RMB 1.3 billion ($190.62 million) by issuing 110 million shares for RMB 11.8 ($1.73) per share.

Proceeds from the IPO will be used toward retail expansion in Anhui Province and the development of a logistics system and a digital advertising network.

Guangfa Securities predicted in a Jan. 18 report that Anhui Xinhua Media's earnings per share would be RMB 0.29 ($0.04) in 2009, RMB 0.33 ($0.05) in 2010, and RMB 0.39 ($0.06) in 2011.

Anhui Xinhua Media was incorporated from the assets of China's largest publication retail chain, Xinhua Book Store, and is a publications distributor in Anhui province.

Its stock price closed at RMB 17.63 ($2.59) on the first day of trading, and rose by nearly the daily maximum of 10 percent on Jan. 19 to close at RMB 19.39 ($2.84)