Sichuan Expressway to raise 2 bln yuan in Shanghai

Chinese toll road operator Sichuan Expressway Co (0107.HK) said on Monday it planned to raise as much as 2 billion yuan ($292 million) selling new shares publicly in Shanghai, marking China's first major IPO since last September.

The Hong Kong-listed company will sell up to 500 million yuan-denominated A shares, or 16.35 percent of its enlarged capital, and will use the proceeds to fund an acquisition and repay loans, according to its prospectus published through the Shanghai Stock Exchange.

Reuters reported last week that regulators had given Sichuan Expressway final approval for the IPO, a year after the company announced the share sale plan last June. [ID:nSHA143680]

China has allowed three smaller companies, including traditional Chinese medicine maker Guilin Sanjin Pharmaceutical Co, to launch offerings on the Shenzhen Stock Exchange since last month's lifting of a quiet ban on IPOs.

That ban was imposed last year during a market slump but China's stock market has since rebounded, with the benchmark index .SSEC surging more than 60 percent so far this year on ample liquidity in the financial system and signs that the economy is recovering from the global financial crisis.

Regulators will also resume approval soon for additional public share sales by listed companies, the official Shanghai Securities News reported on Monday.

Sichuan Expressway will receive subscriptions for its Shanghai IPO on July 14 and 15, with China Galaxy Securities Co being the underwriter. (US$1=6.832 Yuan)