VC-backed Neway jumps 32% on debut as China IPOs resume

Shares in the company, which claims to be China's largest industrial valve exporter, were suspended from trading for half an hour in the morning after hitting the upper price limit.

Neway Valve sold 82.5 million shares at a RMB17.66 apiece to raise RMB1.5 billion ($248 million) in its IPO. This valued the business at 46.5 times its 2012 earnings, compared with 33.85 times for listed industry peers, the company said.

According to AVCJ Research, investors including Suzhou International Development Venture Capital committed RMB234 million ($38.7 million) to the company in 2009.

The Shanghai Composite Index was down 1% at noon.

Fifty companies are expected to be ready to list by the end of January, the China Securities Regulatory Commission (CSRC) said in December, after pledging to move toward a registered-based IPO system.

According to Ernst & Young, this initial group could raise around RMB40 billion, while fundraising could reach RMB200 billion for 2014 as a whole.

There were more than 760 companies with listing applications pending and the CSRC said it would take a full year to audit them.

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• Topics
• Greater China
• Exits
• Industrials
• China
• IPO
• manufacturing
• Exit