By Graham Earnshaw
SHANGHAI, Nov 12, Reuter – Shanghai Refrigerator Compressor wants to become the first B-share company this year to list extra shares on the Shanghai Stock Exchange to fund its expansion plans.
The company, which produces compressors for refrigerators and air-conditioners, is one of the fastest growing of China’s state enterprises and one of the few the Shanghai broking community holds in high regard.
The general manager of the company, Bao Qulai, said the had received official approval to issue 50 million new hard-currency B shares.
At present, it has 65 million B shares for overseas investors -29.4 per cent of the firm’s share capital – listed in Shanghai.
The rest is held by the state, institu-tions and domestic investors.
The securities authorities denied Refrigerator permission for a rights issue to existing shareholders.
Bao said the result of a share holder vote on the new share issue will be known on Nov-ember 27.
“I hope shareholders will understand and support the proposal,” he said. “From a long-term point of view, this investment should give a good return to our shareholders.”
When, at the end of October, the company announced its plan to issue new shares, the B-share price dropped just below 4 per cent on dilution concerns. It has since recovered.
On Friday, it closed up Us4c, or 8.51 per cent, at US51c.
The company has so far contained many of the problems that weigh down other state enterprises and is experiencing fast growth, largely as a result of a successful joint venture with the Japanese company Hitachi. REUTER GAE