CNBM seeks CNY15bn listing, China

CNBM seeks CNY15bn listing, China
Published: 04 April 2012


China National Building Material (CNBM) China National Building Material (CNBM), hopes to list in Shanghai this year, according to local press reports.

The company hopes to raise CNY15bn from its Shanghai A-share listing, said Nomura analyst Luo Yang, but cautioned: "They are too optimistic. CNY10bn  should be the maximum, given the market."

The state-owned firm has applied to the China Securities Regulatory Commission for an A-share listing in Shanghai and is awaiting its approval, said CNBM chairman Song Zhiping. "If there is a good window, we hope to list this year," Song said.

CNBM plans to issue up to one billion A-shares in Shanghai, said CNBM board secretary Chang Zhangli. "When we list, our A-shares will do better than our Hong Kong shares," Chang said.

A Shanghai IPO would significantly reduce CNBM's net gearing ratio, which stood at 202.4 per cent at the end of last year, said CNBM president Thomas Cao Jianglin. CNBM aimed to grow cement sales this year by 40 per cent and sales of its other materials by 20 per cent, Cao said. "We can fully achieve 30 per cent profit growth," he said.

Cement accounted for three-quarters of CNBM's revenue last year, while lightweight building materials accounted for 7.4 per cent, glass fibre 2.8 per cent and engineering services 8 per cent.