Chinese quartet may debut on London market
Cobalt new materials manufacturer Zhejiang Huayou Cobalt Co Ltd, cultural company Shanghai Oriental Pearl Group, Kangmei Pharmaceutical Co Ltd and Tasly Pharmaceutical Group are examining the possibility of selling shares in London, potentially to raise money under the long-awaited Shanghai-London Stock Connect Program, according to sources with knowledge of the matter.
The companies, which expressed their interest in participating in the stock exchange program, have discussed with related parties possible frameworks to raise funds in the UK through global depositary receipts, according to sources with knowledge of the matter.
Talks on potential listing in the London market remain at an "early phase". No specific timeline has been determined, but a rough estimate of the timing for the listing may be "early next year", the sources said.
Headquartered in Zhejiang province, Huayou Cobalt mainly engages in the manufacturing, processing and sales of nonferrous metals. The company has a capitalization of around 28.65 billion yuan (4.11 billion U.S. dollars) in the domestic A-share market.
Shanghai Oriental Pearl Group, with a market capitalization of around 30.95 billion yuan (4.44 billion U.S. dollars), is engaged in the media, tourism and entertainment related business. Kangmei and Tasly are involved in the manufacturing and sales of pharmaceutical, healthcare and health food products.
Companies did not respond to emailed requests for comments by press time.
Earlier in September, Huatai Securities said the company is expected to seek a listing in London, becoming the first Chinese company to raise funds through global depositary receipts via the stock connect scheme. The animal-nutrition firm Bluestar Adisseo is also considering possible listing, according to media reports.