Riemann Leads China Haoran Recycling to KOSDAQ IPO

2010-02-08 15:40 2101

SHANGHAI, Feb. 9 /PRNewswire-Asia/ -- Riemann Investment Holdings Ltd. ("Riemann Investment"), as the sole financial advisor and the leading investor, advised China Haoran Recycling Co., Ltd. ("China Haoran") on its successful IPO on KRX's KOSDAQ market on 5th February, 2010. The Company became the first paper-making corporation with resource recycling technologies from China to list on KOSDAQ, the tenth Chinese company on the KRX, and also the first KRX listed Chinese company from Jiangsu Province.

The capital raised by China Haoran (900090) reached 47 billion won (about RMB 0.3 billion) with 19x PE ratio based on 2008 net earnings, and the market capitalization at issuance amounted to RMB 1.1 billion based on the issue price of 4,700 won. The Korean market warmly welcomes China Haoran with the over-subscription of 20 times from institutional investors and 45 times from non-institutional investors during the period of market turmoil. On the IPO day, the share price of China Haoran topped up 15% and closed at the uplimit price 5,000 won, even under the circumstance that the KOSDAQ index dropped nearly 4% at the same time. The listing of the Company also provides investors good opportunities to share profits from the low carbon and renewable resources sector, the fast-growing economy of China and the experienced management team.

Jiangyin Xinhao Paper and Jiangyin Recycling, operating entities of China Haoran, are strategically located in the center of the prosperous Yangtze Delta Region -- Jiangyin City. The Company is a highly specialized pulp and papermaking corporation engaged in the collection, sorting, re-using and packaging of waste paper as well as manufacturing of de-inked bleached pulp and coated duplex board. The Company has a waste paper recycling and processing capacity of 700 thousand tons per annum, as well as an annual pulp and paper production capacity of 150 thousand tons each. It is at present the largest non-state owned recycler of waste paper in the Yangtze Delta Region and also one of the largest producers of high quality coated duplex board in China's Jiangsu Province.

The Company plans to use the capital to raise a stronger capital base, to boost the upstream waste paper collection business & capacity of de-inked bleached pulp and to capture margins at various stages of production. Benefiting from substantial economies of scale, the Company is poised to enhance its international profile.

Source: Riemann Investment Holdings Ltd.