Nine Companies Set Prices For Listings On China’s Nasdaq-Style Tech Board

www.oann.com | 6/13/2019 | Staff
finter (Posted by) Level 4
SHANGHAI (Reuters) – Nine Chinese companies, among the first to float on China’s red-hot Nasdaq-style tech board, announced prices of their new share offers on Tuesday, taking advantage of investor fervor to market themselves at valuations some view as lofty.

The busy week of initial public offerings (IPOs) comes after an official announcement that the first batch of 25 companies will start trading on Shanghai’s tech-heavy STAR Market on July 22. This week alone, 21 of them are taking subscriptions from investors.

Tech - Board - Government - Control - IPO

The new tech board has done away with government control of IPO quantity and pricing, allowing companies and underwriters to set prices based on market demand.

As a result, valuations of the IPOs, measured by earning multiples, vary widely, ending the unofficial but always observed pricing cap of 23 times a company’s trailing profits.

Advanced - Micro-Fabrication - Equipment - Inc - AMEC

Advanced Micro-Fabrication Equipment Inc (AMEC), a maker of semiconductor equipment, on Tuesday priced its new offering at 29.01 yuan ($4.22) per share, or 170.8 times its 2018 earnings, excluding extraordinary items.

In contrast, China Railway Signal &...
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I find it extremely funny when people keep voting and expecting the government to change!
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