SHANGHAI, Feb 9 (Reuters) - Chinese brokerage Dongxing Securities Co Ltd said on Monday it plans to raise 4.59 billion yuan ($735 million) in an initial public offering in Shanghai, the latest mid-sized broker to plan a listing as profits soar amid a sizzling stock market.
In a filing with the Shanghai stock exchange, Dongxing Securities said it has set its IPO price at 9.18 yuan per share and aims to issue up to 500 million shares. The funds raised will be used for working capital purposes.
The Dongxing Securities plan comes after Guosen Securities Co Ltd last December raised 7 billion yuan in the country’s largest IPO since 2011 on the smaller Shenzhen exchange.
Some brokerages are seeing profits double as retail investor numbers jump and trading volumes soar, spurred by the central bank’s surprise interest rate cut on Nov. 21. Business has also been boosted by the Stock Connect scheme, which opened in the same week, allowing direct trading of Hong Kong and Shanghai stocks on each other’s bourses.
Dongxing Securities’ net profit surged 56 percent to 1.04 billion yuan in 2014 from 2013, it said in its IPO prospectus.
Other brokerages plan to tap China’s exchanges for funds, including Guotai Junan Securities Co Ltd, which has applied for an initial public offering in Shanghai that could raise nearly 22 billion yuan.
$1 = 6.2481 Chinese yuan renminbi Reporting by Engen Tham; Editing by Kenneth Maxwell