China Shenhua Energy's record-setting share sale on the A-share market is set to provide mainland investors another option to profit from the country's strong economic growth, alongside highly valued banks and developers.
Shenhua Energy, the mainland's largest coal producer, drew subscriptions worth a record 2.66 trillion yuan, the company said in a statement to the Shanghai Stock Exchange yesterday.
That exceeded the 2.26 trillion yuan in subscriptions for China Construction Bank a week ago.
In the largest public offering on the mainland, Hong Kong-traded Shenhua Energy raised 66.58 billion yuan by floating 1.8 billion shares, which also beat Construction Bank's record-setting 58 billion yuan.
Institutional investors ordered 36 times the 540 million shares on offer while the 1.26 billion shares allocated to the general public were 42 times oversubscribed, the company said.
Analysts said the listing of the heavyweight coal producer might invigorate the A-share market now that the blue chips, such as banks and developers, were overvalued.
