Chinese coke producer Henan Jinma Energy Co. Ltd. hit the main board of the Hong Kong Stock Exchange on Oct. 10, trading as high as HK$3.34, or an 11.3% premium to its IPO price.
The company completed its HK$352.6 million IPO at an issue price of HK$3.0 and closed its first trading day at HK$3.17, with 59,481,000 shares changing hands.
Chairman Yiu Chiu Fai said on the sidelines of the company's listing ceremony that it will focus its acquisition plans on downstream energy products. It is not considering acquiring coal mines.
"We purchase around 3 million tonnes of coal from suppliers nearby. Currently, we have no plans to operate coal mines of our own," Yiu said, citing long-term cooperation with high-quality suppliers and convenient transportation network as strengths.
Yiu expects the company to benefit from potential consolidation in the coke industry. Chinese coking coal companies are expected to consolidate with other industry players, both from upstream and downstream, to benefit from scale, Yiu said.
He added that Henan Jinma was in preliminary talks with some local companies for consolidation but there has not yet been any in-depth discussion.
The completion of the IPO will accelerate the company's move to further extend its value chain and produce downstream liquefied natural gas products, Yiu said.
The Henan-based coke producer also plans to diversify its customer base while strengthening existing cooperation with its shareholder Maanshan Iron & Steel Co. Ltd., the chairman said.
"We will seek to establish cooperation with more high-quality enterprises to diversify our customer base," he said.