06/12/2005 Exchange welcomes China Shoto to AIM
The London Stock Exchange is delighted to welcome China Shoto to AIM
6 December 2005
China Shoto is one of China’s leading companies engaged in the design, development, manufacture and sale of industrial batteries and power supply systems. The Company is principally involved in the production of rechargeable lead acid batteries which are sold as individual units or as battery systems for a wide range of industrial applications. It also supplies related products such as chargers, power equipment and battery accessories.
China Shoto’s products are widely used in telecoms, electrical power, the Uninterruptible Power Supply (UPS) market, electrical bicycles, railway locomotives and passenger trains and other markets. The Company is a leading supplier of lead acid batteries to major Chinese companies such as China Telecom, China Mobile, China Unicom, China Netcom and China Tietong.
Following the successful placing of 4,615,385 new Ordinary Shares at 130 pence each, the Company has raised £6 million in gross proceeds from the placing, giving a market capitalisation on admission of £26 million at the Placing price.
A record number of Chinese companies have joined AIM in 2005. So far this year, 9 Chinese companies have joined AIM, raising a combined total of £25.04 million.
With China Shoto’s admission, a total of 14 companies from China are now quoted on AIM, with a combined market capitalisation of £218.31 million.
The listing is a natural step in China Shoto’s development. The proceeds from the placing will be used to construct a new Power VRLA battery plant; to increase its holding in Beijing Full Three Dimension Power Engineering Co., Ltd. ("FTD"), a leading turbine design and refurbishment service provider in China, and to provide working capital for the Group.
Cao Guifa, Chairman of China Shoto plc, commented:
“We are very pleased with the positive response to China Shoto’s IPO. We now look forward to using the funds raised from the flotation to take China Shoto to the next stage of growth and to continue to build on the success of our already strong brand and reputation. The funds raised will allow us to increase our penetration of our domestic market and for us to expand sales overseas. We now look forward to working with our new institutional shareholders and taking the Group to the next stage of its development.”
Seymour Pierce is acting as Nominated Adviser and as Broker to the Company.