Golden Shield‘s Hong Kong IPO 79 times over-subscribed

Proceeds of HK$119mn to fund expansion of production capacity.

Golden Shield Holdings (Industrial) Limited (“Golden Shield”), a leading cotton spinning product supplier in northwestern China, on Tuesday announced its Public Offering results.

The offer shares for the Hong Kong Public Offer were approximately 79 times over-subscribed and the shares offered under the Placing were also sufficiently subscribed. The Offer Price of the shares is HK$0.7 per share.

The net proceeds payable to the Group are estimated at approximately HK$119.2 million and will be mainly used for the expansion of production capacity of higher count combed cotton yarn.

Mr Chen Binghui, Executive Director and Managing Director of Golden Shield, said, “We are pleased by the subscription results, which demonstrates the confidence of investors in our business and prospect. Our listing on the Main Board of The Stock Exchange of Hong Kong Limited is a significant milestone of Golden Shield, providing us with a strong impetus to accelerate the overall development of our business.”

Trading of the shares on the Main Board of SEHK will commence on 14 July 2011 (Thursday).

Shares will be traded in board lots of 4,000 shares under the stock code 2123, according to a Golden Sheild report.

Guotai Junan Capital Limited is the Sponsor; while Guotai Junan Securities (Hong Kong) Limited is the Bookrunner and Lead Manager of the proposed listing of the Group.