Guangdong Xinbao sets 10.5 yuan IPO price

Guangdong Xinbao Electrical Appliances Holdings Co., Ltd. said on Tuesday it will issue no more than 76 million new shares on China's A-share market with a set price of 10.5 yuan (1.72 U.S. dollars). The company's share subscription announcement was the first to come after the nation's securities regulator approved initial public offerings (IPO) by Guangdong Xinbao and four other companies on Dec. 30. The share subscription also signaled the recommencement of IPOs in the Chinese stock market after a freeze for more than a year. The company expects to raise up to 798 million yuan through the IPO. Its shares will be listed on the Shenzhen Stock Exchange, according to an announcement filed to the exchange. Guangdong Xinbao, established in 1995 and based in Foshan of south China's Guangdong Province, manufactures home appliances such as electric kettles and toasters. In the stock markets, the benchmark Shanghai Composite Index opened 0.56 percent lower at 2,034.22 points while the Shenzhen Component Index dropped 0.74 percent to open at 7,760.96 points.