Neway IPO to test post-reform China markets

The Rmb839 million IPO of the manufacturer of valves to the oil and gas industry is being marketed at a discount of up to 20% to its peers.

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 PE ratio of 30.99 times for eight comparable companies listed in the domestic and overseas...

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