21 January 2019

Forever Tech resumes IPO on Shenzhen GEM, paper says

Beijing Forever Technology Co. Ltd. (300365.CN) has resumed its initial public offering on Shenzhen’s Growth Enterprise Market (GEM), Shanghai Securities News reported Tuesday, citing a company announcement. The software developer was among five IPO applicants who had been ordered by the China Securities Regulatory Commission (CSRC) to suspend their share offerings because the new regulatory rules. CSRC requires companies to issue risk warnings at least once a week before the share subscription should their price to earnings ratio go higher than the average PE ratio of the industry on the secondary market, the report said. But Forever Technology said it has set its IPO price at 43.21 yuan (US$7.08) per share, representing 42.16 times PE, lower than the average industry ratio of 46.28 times. The company’s online roadshow started Tuesday, the report said.

– Contact HKEJ at [email protected]




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