CSCEC IPO Looks Rich

China State Construction Engineering Corp (CSCEC)  is looking to raise 50 billion yuan ($7.3 billion) from selling a 40% stake in its A-shares on the Shanghai excahnge. That looks rich. The indicated price is 49-51 times 2008 earnings on a fully diluted basis, high by the standards of the average 27 times historic earnings of Shanghai A-shares, and even by the standards of the big construction groups, which typically sell for 44 times historic earnings.

1 Comment

Filed under Markets

One response to “CSCEC IPO Looks Rich

  1. Pingback: CSCEC Gets It IPO Away With Ease « China Bystander

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s