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Wuxi Zhenhua Auto Parts’ IPO debut on Shanghai Stock Exchange today

CKN
minutes 2021/06/07 07:03:39
5,196

Jun 07, 2021 (China Knowledge) - Wuxi Zhenhua Auto Parts (605319) to start trading on the Shanghai Stock Exchange - Main Board today. The IPO is priced at RMB 11.22 per share to raise RMB 561 mln. Its initial listing shares accounts for 25% of total outstanding shares. The company’s initial price-to-earnings ratio (PE) stands at 22.98. During subscription the IPO was 7,713 times oversubscribed.

Guotai Junan Securities acted as the lead underwriter and sponsor for the IPO.

Wuxi Zhenhua Auto Parts is a China-based company mainly engaged in the development, production and sales of automotive stamping and welding parts and related moulds. The automotive stamping parts produced and sold by the Company cover automotive body parts, chassis parts, powertrain parts, including oil pans and converter housings, and electronic and electrical components, including battery trays and battery trays. The Company provides subassembly assembly processing services, and its final product is automobile body parts. The Company is also engaged in the design, development and processing of stamping dies.

In financial year 2020, Wuxi Zhenhua garnered a total revenue of RMB 1.42 bln, up 9.7% YoY. In terms of net income, it achieved RMB 105.4 mln, up 0.4% YoY. In the latest quarter of 2021, the company reported revenue of RMB 335.6 mln, a YoY increase of 78.3%, and its net profits reached RMB 28.9 mln, up 344.6% YoY.

The funds raised from the IPO will be used for expanding its Wuhan auto parts production base, improving the company’s annual output to 600,000 sets of auto body parts, and supplementary working capital.

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