Shenzhen Silver Basis Technology Co. Ltd. had scheduled an initial public offering for July 6, but a few weeks before that, the Chinese stock market crashed.
Companies witnessed their share prices fall off a cliff, and more than $3 trillion of market value was wiped out in three weeks from mid-June. Chinese regulators scrambled to halt all IPOs on July 4 to prevent further shortage of capital and mitigate the financial tumble, just two days before Silver Basis' original IPO date.
When that happened, Silver Basis told Reuters that the freeze did affect its original plans and arrangements, but also said it was “within” the company's expectations.
Five months later, having stabilized the market, China lifted the ban and resumed IPOs. Silver Basis restarted its floatation process.
On Dec. 14, the company officially started its new shares subscription on the Shenzhen Stock Exchange with an IPO price set at 10.72 yuan per share. Public trading in secondary markets will follow later this week.
Silver Basis last year ranked as one of the 10 largest plastic mold makers in China by a research firm. Its stock filings show that sales topped 1.89 billion yuan ($292.13 million) in 2014 and are expected to grow 10-25 percent in 2015. Net profit came in at 61.77 million yuan ($9.56 million) in 2014 and also is projected to rise by 10-25 percent this year.
The company mainly produces large high-precision injection molds for the automotive and appliances industries. Its key customers include automakers such as Ford, Nissan, Renault, Honda and BMW, as well as auto suppliers including Faurecia, Plastic Omnium, Magneti Marelli, and Yanfeng. Its molds are also used to make precision structural components for global firms like Huawei, Cisco, TCL, ABB, and GE Healthcare.
The company aims to raise 340.68 million yuan ($52.72 million) and plans to use the capital to fund expansion projects in Huizhou and Tianjin as well as a large-scale R&D project.