Guofeng steels itself for cheap valuation

Pre-marketing nears end for IPO of Chinese steel company China Guofeng.

Roadshows for a $150 million to $170 million IPO for Red Chip China Guofeng will begin today Monday following two weeks of pre-marketing. Pricing will take place on the weekend of December 1112 with First Shanghai and Macquarie acting as co-leads alongside lead manager JPMorgan.

The deal marks the second IPO lead manager JPMorgan has completed for a Chinese steel company this year and its prospective valuation shows just how hard the sector has been hurt by the government's austerity measures.

The company will have a freefloat of 25% pre greenshoe and is marketing the deal on a 2004 PE range of 4.5...

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