Jintian Xincai’s IPO application on the main board of Shanghai Stock Exchange was accepted by the CSRC a few days ago. The company plans to issue no more than 76 million shares in the initial public offering, no less than 10% of the total share capital after issuance, and the total share capital after issuance shall not exceed 622 million shares. The securities sponsor is Guoyuan Securities Company Limited(000728) .
The prospectus shows that the company is mainly engaged in the R & D, production and sales of BOPP and other plastic films, and is committed to providing customers with high-performance film products with multiple specifications, models and different uses to meet the differentiated needs of different customers. After deducting the issuance expenses, the funds raised from the initial public offering of shares will be mainly used for three projects, with a total investment of RMB 1.566 billion and the proposed raised funds of RMB 1.566 billion.
Among them, the construction project of functional polyester film production line with an annual output of 70000 tons has a total investment of 649 million yuan and the investment of raised funds is 649 million yuan. The project mainly produces high-end polyester films such as window film, release protective film and transfer base film, which are applied to automotive, electronic and electrical appliances, cigarettes and other fields, so as to expand the company’s product range, increase the company’s profit source and meet the needs of future development. The project will build two clean workshops and two functional polyester film production lines. The construction period is 36 months, which will be implemented by Wenzhou Jintian, a wholly-owned subsidiary. The company predicts that the internal rate of return (IRR) is 17.23% after tax.
The construction project of BOPE film production line with an annual output of 32000 tons has a total investment of 267 million yuan and the investment of raised funds is 267 million yuan. The project mainly produces BOPE films such as flat film, heat sealing film, metallized film and white opaque film (extinction film), so as to effectively expand the business scale of the company and improve the overall profitability of the company. The construction period of this project is 36 months, which is implemented by Jintian Xincai. The company predicts that the internal rate of return (IRR) is 25.39% after tax.
