Suchuang Gas launches IPO

City gas distributor hopes the prospect of tariff reform will propel IPO as sentiment towards the sector appears to be on the turn.

Suchuang Gas launches roadshows for a Hong Kong initial public offering on Friday, hoping to benefit from rumoured national tariff reforms that should tilt the pricing advantage back from oil to gas and re-energise the sector's stock market performance.

The Jiangsu-based city gas distributor is hoping to raise HK$416 million to HK$584 million $53.6 million to $75.3 million from the 200 million new share deal, which will have a 25% freefloat. The price range has been set at HK$2.08 to HK$2.92, which equates to a forward pe range of 9.3 to 13 times earnings.

Syndicate analysts calculate that fair value for the...

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