Chinese chemical manufacturer to raise $100m on London Stock Exchange

investmentweek.co.uk:

The Shenzhen-London Stock Connect, part of the London Stock Exchange Stock Connect, provides investors and companies in the UK and China with mutual access to each other’s capital markets | Credit: iStock

In a stock exchange notice, the company said the offering is expected to price no lower than $9.41 per GDR, with the final offer price determined based on a bookbuilding process which is expected to end today (5 July).

A GDR is a type of bank certificate that represents shares in a foreign company and trades on two or more global stock exchanges. Shares of the foreign company trade as domestic shares where the company is located, but GDRs also allow international investors to access the market.

Four graphs explaining... China

The GDRs are expected to list in the standard segment of the FCA's Official List on or around 11 July, and to trade on the Stock Connect segment of the main market of the LSE. 

Launched in 2019, the Shenzhen-London Stock Connect, part of the London Stock Exchange Stock Connect, provides investors and companies in the UK and China with mutual access to each other's capital markets.

Chair Yingmei Wang said Shenzhen-London Stock Connect is a «remarkable achievement» of the economic and financial dialogue between China and the UK, and also a «key measure» to open up China's capital markets. 

China: Past its peak?

«Yongtai is the first Shenzhen Stock Exchange listed company to issue and list GDRs on the London Stock Exchange through the Shenzhen-London Stock Connect programme,» she said. 

«We believe Yongtai's GDR issuance will not only be a landmark in the development of the company, but also further enrich the Shenzhen-London Stock Connect programme portfolio and provide better investment