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AGRIBUSINESS | Tony Chua, Hong Kong

Golden Shield IPO to start on Jun 28

The company proposes global offering of 244,896,000 shares at HK$0.7 per share to raise up to HK$171mn.

Golden Shield Holdings (Industrial) Limited (“Golden Shield”), a leading cotton spinning product supplier in northwestern China, on Monday announced the details of its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”).

Of the 244,896,000 shares for Global Offering, 90% are to be offered for Placing and the remaining 10% are to be offered to the public in Hong Kong (“Hong Kong Public Offer”). The indicative price is HK$0.7 per share. Total issue consideration is estimated to be approximately HK$171 million, as stated in a Golden Shield report.

The Hong Kong Public Offering will begin on 28 June 2011 (Tuesday) and end at noon on 6 July 2011 (Wednesday). Public Offering results will be announced on 12 July 2011 (Tuesday). Trading of the shares on the Main Board of SEHK will commence on 14 July 2011 (Thursday) under the stock code 2123. Shares will be traded in board lots of 4,000 shares. Guotai Junan Capital Limited is acting as the Sponsor; while Guotai Gunan Securities (Hong Kong) Limited is acting as the Bookrunner and Lead Manager of the proposed listing of the Share Offer.

Mr Chen Binghui, Executive Director and Managing Director of Golden Shield, said, “In the past, Golden Shield quickly expanded its scale through successful strategic acquisition of state-owned enterprises and capitalising on its own management’s expertise and modern production equipment. Last year, the Yongle Production Plant which produces higher count combed cotton yarn commenced operation, bringing a new growth driver to the Group. Guided by our continuously expanding development plan, we believe our listing in Hong Kong will further fuel our growth and enhance shareholders’ returns.”

Mr Chen concluded, “To grasp the huge business development opportunity, the Group has planned to expand its business scale and implementation has already commenced in various aspects. In addition to the expansion of production plants and the enhancement of quality assurance, the Group has focused on developing other higher count combed yarns such as 80 counts and 120 counts to enhance the Group’s product range and profitability. With the above-mentioned initiatives in the pipeline, Golden Shield is well positioned to maintain its competitive edge as the leading cottonspinning product supplier in northwestern China.”

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