China XD Electric aims to raise $1.5 billion from Shanghai IPO

The electrical infrastructure equipment maker offers its shares at a cheaper-than-average valuation as the large deal size will be a true test of investor appetite for new listings.

China XD Electric Co, the country's largest high-voltage electrical infrastructure equipment maker, plans to raise as much as Rmb10.27 billion $1.5 billion from a Shanghai initial public offering IPO to expand production.

XD Electric is selling 1.37 billion A-shares at a price between Rmb7.10 and Rmb7.90 apiece, which is equal to 30.7 to 34.2 times its 2008 net profit, the company said in a filing to the Shanghai Stock Exchange yesterday.

The valuation is relatively cheap compared with an average...

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