Chinese packaging machinery manufacturer Peixin has launched its IPO procedure on the Warsaw Stock Exchange. The company hopes to raise up to zł.100 million by issuing 4 million shares priced at zł.25 each.
The company needs zł.100 million to build an R&D center
Courtesy of Peixin International group
The new issue will make up 25 percent of the company’s stock after the IPO. Peixin plans to sell 20 percent of the offered shares to individual investors and 80 percent to institutional ones. Its WSE debut is scheduled for October 10.
“We’re looking for additional funds for the investments we are planning. Listing on Chinese stock exchanges is a lengthy process and state-owned companies have priority,” said Peixin president Qiulin Xie. “We’re not big enough to be traded in the USA or Germany, but we’re a perfect fit for the Warsaw Stock Exchange, which is a stable and growing bourse,” Mr Xie added, explaining why he decided to list his company on the WSE.
The company, which produces machines manufacturing hygiene products such as tissues and diapers, wants to build an R&D center, and expand its production lines. The firm estimates that such investment, valued at roughly zł.100 million, will increase its production capacity by 75 percent. The company sells its products in China and other Asian countries as well as Africa and South America.
In 2012, Peixin had a net profit of €46.5 million and in the first half of 2013 it posted a €27.4 million net profit.
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