ZOOMLION H-Share Price Is Close To The Lower Limit Of The Interval.

Late December 19th, the world's largest manufacturer of concrete machinery.

ZOOMLION's H-share IPO intends to issue 870 million shares. According to this calculation, ZOOMLION expects the total fund-raising will be HK $13 billion, which is lower than what the company had expected.

CLSA issued a research report in December 15th. ZOOMLION offered a stock of 13.98 yuan to 18.98 yuan per share, equivalent to 13.5 times to 18.4 times the expected price to earnings ratio, and the 2011 price earnings ratio is expected. The price limit of ZOOMLION is below the attracting level, but if the upper limit is limited, there will be little room for improvement.

The report also pointed out that compared with 03339.HK, ZOOMLION has a higher entry threshold and more product categories than ZOOMLION. Therefore, it is more reasonable for ZOOMLION to have a premium than dragons.

When the Zhonglian heavy Cobain H share issue is listed, two state-owned shareholders, the state-owned assets supervision and Administration Commission of the Hunan Provincial People's government and the Hunan Development Investment Group Co., Ltd. shall be pferred to the social security fund board by holding 10% of the shares of the company's shares held by the company in the light of the actual number of shares issued by the company.

The total number of shares held by these shareholders should be reduced to 86 million 960 thousand shares and will withdraw from A shares in December 22, 2010.

At present, the company's A share capital is 4 billion 928 million shares. After the reduction, the number of A shares is 4 billion 840 million shares.

The company expects H-shares to start trading on the main board of the Hongkong stock exchange in December 23, 2010 and may exercise over 130 million subscriptions of H-shares before January 15, 2011. The sponsors are CICC and Goldman Sachs.

ZOOMLION is the second Chinese construction machinery manufacturer who went to Hong Kong after the dragon industry in China. ZOOMLION was listed on the Shenzhen Stock Exchange in October 2000. According to the 2009 turnover, it is the second largest and tenth largest construction machinery manufacturer in China.

ZOOMLION A shares closed 14.86 yuan on Friday, down 1.07%.