Jun 11, 2021 (China Knowledge) - Lutian Machinery (605259) to start trading on the Shanghai Stock Exchange’s Main Board on June 15, next Tuesday. The firm has issued 22 mln shares priced at RMB 27.10 per share raising RMB 596.2 mln. The company’s initial price-to-earnings ratio (PE) stands at 22.99. During subscription the IPO was 10,086 times oversubscribed.
Changjiang Securities acts as the lead underwriter and sponsor for the IPO.
Lutian Machinery is a China-based company primarily engaged in the research and development, production and sales of general power machinery products and high-pressure cleaner products. The company mainly provides two categories of products: namely the general power machinery products that include generator sets, water pump sets and engines. High-pressure cleaner products include household high-pressure cleaner and commercial high-pressure cleaner. It also distributes its products within the domestic market and to overseas markets, including Europe, South America, North America, Southeast Asia, and others.
In FY 2020, Lutian garnered a total revenue of RMB 1.23 bln, up 16.7% YoY. In terms of net income, it achieved RMB 116 mln, up 30.8% YoY. In Q1 2021, the company reported revenue of RMB 370 mln, a YoY increase of 70.5%, and its net profits reached RMB 29.18 mln, up 54.6% YoY.
The funds raised from the IPO will be used for research and development to improve the company’s products, expand its production capacity and efficiency, and to supplement its working capital.
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