China Guofeng preps for IPO

Pending approvals, construction industry supplier China Guofeng Group could be first among a spate of steelmakers seeking to list, advancing plans to get its roadshow rolling later this month. The planned US$200 million initial public offering has been moved up to take advantage of perceptions of a reviving steel market, and to beat Kunming Iron & Steel and Liuzhou Iron & Steel to the market. But, like the others, Guofeng is still awaiting approval to list from the regulator. Bank of China (International) data suggests construction steel prices, though still well down from their peak, have shot up in some cases by as much as a quarter since their mid-year lows brought on by Beijing's administrative measures to cool the overheating steel and cement sectors.