Press Release
JPMFC acted as the Sole Sponsor and Sole Lead Underwriter for Shenyang Machine Tool Co., Ltd. 2013 Private Placement
On 19 April, 2013, Shenyang Machine Tool Co., Ltd. (SMTCL, 000410.SZ) completed its 2013 Private Placement of 220 million shares successfully with the offering price of RMB 5.58 per share. RMB 1.2 billion was raised and the new shares are to be listed on Shenzhen Stock Exchange on May 14, 2013. J.P. Morgan First Capital (JPMFC) acted as the sole sponsor and sole lead underwriter.
SMTCL is now the biggest machine tool company in China, and its controlling stakeholder Shenyang Machine Tool (Group) Co., Ltd. ranks No.1 among world’s machine tool companies with an income of USD 2780 million in the machine tool business in 2011. The Private Placement was the first follow-on financing for SMTCL since IPO in 1996 and it acted as the start of a series of subsequent capital operation in the near future. Its success in raising capital through the deal is to enhance its technology strength in the adjustment stage of macro-economy cycle and to help embrace the next brilliant opportunity for further development in the near future.
This is the first Equity-related deal led by JPMFC deal as the sole sponsor and sole lead underwriter, demonstrating JPMFC’s strong capability in sponsoring and underwriting service. It’s also the first time for JPMFC to serve large-and-medium-sized state-owned enterprises independently, which fully demonstrates its wisdom and skills in advising state-owned enterprises on their historical remaining issues. JPMFC’s also earned credits for its strong communication skills with key regulators as well as its extraordinary solutions. As the A-share market was slumping and there was huge pressure for private placement sales, JPMFC was able to organize road-shows efficiently and communicate with all kinds of investors thanks to our strong network, finally grasping the market window accurately and successfully acting as a bridge between the issuer and capital market, which proves that JPMFC is a professional, efficient, diligent, conscientious and excellent security firm on the capital market and its strong capability in sales.
