Shanghai Huafon Aluminium launching IPO on Shanghai Stock Exchange

According to a recent report, Shanghai Huafon Aluminium (601712) will start trading on the Shanghai Stock Exchange – Main Board from Monday, September 7, at a public offering price of RMB 3.69 per share, to raise RMB 921.13 million. Its initial listing shares will account for 25 per cent of the total outstanding shares. The company’s initial price-to-earnings ratio stands at 22.93.

As per the report, Industrial Securities acted as the lead underwriter and sponsor for the IPO.

Earlier, Shanghai Huafon Aluminium said its IPO was 1,145 times oversubscribed. From 2019 to date, A-shares IPOs achieved median oversubscription of 2,373 times and the highest at 8,375 times. On the very first day of listing, Huafon’s IPO is expected to hit the limit of 44 per cent increment. For subsequent 30-day trading, the performances can be obtained from our China IPO Weekly.

Shanghai Huafon Aluminium Corp does research, development, production and sales of aluminium sheets, strips, and foils, including aluminium heat transfer materials, divided into aluminium heat transfer composite materials and aluminium heat transfer non-composite materials, and battery materials for new energy vehicles.

The company also produces stamping parts. Its products are used in the manufacture of heat exchange systems in downstream industries such as transportation, air conditioning, mechanical equipment, and power electronics. Besides, products are also used in structural parts such as power battery components for new energy vehicles and automotive cooling equipment.

In FY2019, Shanghai Huafon Aluminium earned total revenue of RMB 3590.44 billion and achieved net income of RMB 207 million. While the revenue was up by 5 per cent, net income was higher by 10 per cent year-on-year.

Besides China, the firm has operational existence in North America, Africa, South America, Europe and Asia.

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