China: China National Building Material (CNBM) hopes to list in Shanghai in 2012 and be one of the biggest mainland initial public offerings of 2012. The Hong Kong-listed firm hopes to raise US$2.38bn from its Shanghai A-share listing according to Nomura analyst Luo Yang. Yang cautioned however, saying, "It is too optimistic. US$1.58bn should be the maximum, given the market."
The state-owned firm has applied to the China Securities Regulatory Commission for an A-share listing in Shanghai and is awaiting its approval, said CNBM chairman Song Zhiping. "If there is a good window, we hope to list this year," said Song.
Meanwhile, CNBM aims to increase cement sales by 40% in 2012. It hopes to achieve 30% profit growth across all of its businesses. Cement accounted for three-quarters of CNBM's revenue in 2011 and demand is expected to increase by 5-6% in 2012, a massive 100Mt. Again, Nomura's Luo cautioned the speculation, saying that, "This year demand is slowing down. Prices are under downward pressure due to overcapacity."