Shanghai Prime Machinery sets IPO price range

Pre-marketing reveals good demand for leveraged play on industrial production -at the right price.
Shanghai Prime Machinery, which kicked off the official road show for its initial public offering Friday April 7, is pitching its shares to investors at a valuation of 10.3 to 12.6 times its projected 2006 earnings.

That is slightly lower than the initial PE range of 12.3 to 14.3, which is where the company had been testing the market over the past couple of weeks.

ôThe overall response is good, but there is some price resistance at about 13 times forward earnings. The current range will leave a bit more room on the upside once the shares start trading,ö a person familiar with the offering says.

The diversified industrial company is now looking to...
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