<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 8, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>China Gaoxian plans IPO
It may be the largest listing on SGX main board this year
By FELDA CHAY
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CHINA-based polyester fibre producer China Gaoxian Fibre Holdings Ltd is poised to launch its initial public offering (IPO), making it the second S-chip listing on the main board of the Singapore Exchange this year following Passion Holdings' debut last Monday.
The IPO could also be the largest listing this year, BT understands, in what has been a slow year for the IPO sector. Only 10 IPOs have been launched this year, including Catalist listings.
The company is raising funds to expand its business. Plans include raising its production capacity for premium differentiated fine polyester yarn, and expanding its downstream fabric manufacturing business, according to the prospectus it filed with the Monetary Authority of Singapore.
For 2008, China Gaoxian reported that net profit leapt 47.9 per cent to 390.4 million yuan (S$82.3 million) from a year ago.
Revenue jumped 36.8 per cent to 1.83 billion yuan on an increase in sales volume and average unit selling price.
Its business outlook, said China Gaoxian, remains 'relatively positive' due to factors such as the rising affluence of the Chinese population, and the likely corresponding rise in demand for high quality apparel domestically. 'The textile and garment industries in the People's Republic of China have experienced good growth and development over the past years,' said the company in its prospectus.
'Notwithstanding a general slowdown in the synthetic fibre industry on the back of a decline in overseas demand, domestic demand for premium differentiated fine polyester yarn and fabrics have remained relatively firm.'
Risks relating to its business include rising production costs in China, which has seen an increase in raw materials and labour costs in the last few years, the company said.
'Though this has somewhat been moderated in the recent global financial turmoil . . . there is no assurance that the production costs will not continue to increase in the future,' it added.
China Gaoxian is expected to announce the pricing of its IPO later this week.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>China Gaoxian plans IPO
It may be the largest listing on SGX main board this year
By FELDA CHAY
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>CHINA-based polyester fibre producer China Gaoxian Fibre Holdings Ltd is poised to launch its initial public offering (IPO), making it the second S-chip listing on the main board of the Singapore Exchange this year following Passion Holdings' debut last Monday.
The IPO could also be the largest listing this year, BT understands, in what has been a slow year for the IPO sector. Only 10 IPOs have been launched this year, including Catalist listings.
The company is raising funds to expand its business. Plans include raising its production capacity for premium differentiated fine polyester yarn, and expanding its downstream fabric manufacturing business, according to the prospectus it filed with the Monetary Authority of Singapore.
For 2008, China Gaoxian reported that net profit leapt 47.9 per cent to 390.4 million yuan (S$82.3 million) from a year ago.
Revenue jumped 36.8 per cent to 1.83 billion yuan on an increase in sales volume and average unit selling price.
Its business outlook, said China Gaoxian, remains 'relatively positive' due to factors such as the rising affluence of the Chinese population, and the likely corresponding rise in demand for high quality apparel domestically. 'The textile and garment industries in the People's Republic of China have experienced good growth and development over the past years,' said the company in its prospectus.
'Notwithstanding a general slowdown in the synthetic fibre industry on the back of a decline in overseas demand, domestic demand for premium differentiated fine polyester yarn and fabrics have remained relatively firm.'
Risks relating to its business include rising production costs in China, which has seen an increase in raw materials and labour costs in the last few years, the company said.
'Though this has somewhat been moderated in the recent global financial turmoil . . . there is no assurance that the production costs will not continue to increase in the future,' it added.
China Gaoxian is expected to announce the pricing of its IPO later this week.
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