Shenhua seeks US$3bn from joint IPOs

Coal mining giant Shenhua is aiming to raise US$3bn from simultaneous IPOs in Hong Kong and Shanghai to be held in mid-2005, Dow Jones quoted sources close to the company as saying. The move would make Shenhua the first Chinese company to launch a simultaneous offering in Hong Kong and the mainland previous practice has been for Chinese companies seeking a dual listing to first sell HK$-denominated H shares in Hong Kong before being floating RMB-denominated A shares on a mainland exchange. One reason, analysts say, has been the higher price-to-earnings ratios for Chinese stock markets compared to Hong Kong, making it difficult for companies seeking to list in both locations to settle on a single offering price. A source quoted by Dow Jones said that Shenhua, China's largest coal producer, was looking to sell about 25% of its shares in the IPOs, offering the same price for its H shares and A shares.