Equity· IPO

Guangzhou Metro Design & Research Institute’s IPO debut on Shenzhen Stock Exchange today

minutes 2020/10/22 02:01:14

Oct 22, 2020 (China Knowledge) - Guangzhou Metro Design & Research Institute (003013) to start trading on the Shenzhen Stock Exchange - SME Board today, at a public offering price of RMB 13.43 per share, raising RMB 537.33 mln. Its initial listing shares account for 10% of total outstanding shares. The company’s initial price-to-earning ratio (PE) stands at 22.99.

CITIC Securities, Huatai United Securities acted as the lead underwriter, and Huatai United Securities served as the sponsor for the IPO.

Earlier, Guangzhou Metro Design & Research Institute said its IPO was 3,664 times oversubscribed. Since 2019 to date, A-shares IPOs achieved median oversubscription of 2,814 times and the highest at 9,194 times. We expect the IPO to hit limit of 44% increment in its first day of listing. For subsequent 30-day trading the performances can be obtained from our China IPO Weekly.

Guangzhou Metro Design & Research Institute Co Ltd is a China-based company mainly engaged in survey and design, planning consulting and general engineering contracting in the fields of urban rail transit, municipal administration and construction. Its survey business includes geotechnical engineering survey, engineering inspection, engineering monitoring and others. The design business includes the design, construction and special reports of urban rail transit stations, sections, depots, parking lots, systems and preliminary engineering projects. Planning consulting service includes urban and rural planning, line network planning, line network construction planning, engineering project proposal, pre-feasibility study report, feasibility study report preparation, etc. The general contracting business includes the business of whole or partial stage services, such as survey and design, procurement, construction and installation, commissioning, trial operation, delivery and service.

In financial year 2019, Guangzhou Metro Design & Research Institute garnered a total revenue of RMB 1644.47 bln, up 11% YoY. In terms of net income, it achieved RMB 279 mln, up 16% YoY. Accordingly, return on equity (ROE) and return on asset (ROA) stood at 23.29% and 7.98% respectively, earning per share (EPS) of 0.66 RMB.


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