Neway IPO to test post-reform China markets

The IPO of Neway Valve, likely to be the first sizable listing from a mainland group following Beijing’s market reforms, is being marketed at a discount of up to 20% to its peers, according to a research report seen by FinanceAsia

China Securities, the sole bookrunner on the deal, has put a value on the Suzhou-based manufacturer of valves to the oil and gas industry of Rmb10 14 billion-Rmb13 93 billion, or a 2013 price-to-equity ratio of 24 79-30 99 times

The range was set with the high end equal to an average P/E ratio of 30 99 times for eight comparable companies listed in the domestic and overseas markets, based on the closing on...