Investing
Shanghai stock exchange probes Zhejiang King after its public listing halt
© Reuters. FILE PHOTO: A security guard stands at the Shanghai Stock Exchange building at the Pudong financial district in Shanghai, China, February 3, 2020. REUTERS/Aly Song/File Photo
BEIJING (Reuters) – The Shanghai Stock Exchange said it will probe Zhejiang King Co Ltd after the Chinese maker of air conditioners halted its initial public offering (IPO) amid media reports about alleged issues such as the overpricing of shares.
The probe comes as China’s securities regulators have tightened their scrutiny of IPOs and slowed the pace of share sales as part of efforts to revitalise a flagging stock market.
Zhejiang King on Saturday said it will suspend the new share subscription procedure initially scheduled on Monday because of the media reports, without specifying the nature of those reports.
In a statement issued late on Saturday in response to media inquiries about Zhejiang King’s IPO that include allegations of overpricing of shares and that the company attempted to list the same assets twice, the Shanghai Stock Exchange said it is aware of the media allegations and that it will launch a targeted investigation into the firm.
Zhejiang King said in its prospectus published last month that assets related to its air conditioner business were indirectly acquired from a different listed air conditioner company via a series of asset restructuring schemes.
Zhejiang King said last month it aimed to raise 2.38 billion yuan ($325.98 million) at 68.07 yuan per share.
The company priced its IPO at 51.29 times 2022 earnings, and its listed peers trade at 27.8 times earnings on average according to the China Securities Index Co, Zhejiang King said in the prospectus.
($1 = 7.3010 renminbi)
Read the full article here
-
Side Hustles6 days ago
Mark Zuckerberg Is Now Second Richest Person in the World
-
Investing6 days ago
Nvidia CEO Jensen Huang: Demand For Blackwell AI Is Insane
-
Side Hustles7 days ago
How to Be Unapologetically You and Why It Matters
-
Side Hustles7 days ago
With AI Magicx, It’s Like Getting an Entire Creative Team in One Money-Saving AI Tool
-
Side Hustles6 days ago
Meta Previews Movie Gen, AI Tools That Turn Dreams to Videos
-
Investing4 days ago
Hurricane Helene Hits Spruce Pine Mine, Quartz Used for Tech
-
Passive Income7 days ago
How AI-Driven Personalization Is Transforming the Retail Industry
-
Investing6 days ago
BCA says investors should fade the real estate rally By Investing.com