Finding its way: New GEM listco Dingli designs wireless services for handheld map technology. Photo: Dingli

SHENZHEN’S FLEDGLING Growth Enterprise Market, also known as ChiNext, will soon be opening its doors to eight new enterprising China-based firms looking to go public and raise expansion capital.

The eight new firms today began putting shares on offer, and plan to officially list on the Shenzhen GEM board on January 7, 2010, according to the China Securities Journal.

The eight aspirants plan to join eight peers who listed on the GEM Christmas Day.

If all goes according to plan, on January 7, 2010, the new board meant to raise capital for innovative small- and medium-sized enterprises (SMEs) in China and often touted as China’s version of the Nasdaq, will boast a total of 44 companies on its marquis, thus inching it closer to what many analysts have said will be a capital raising platform hosting over 300 firms when all is said and done.

The eight new listcos plan to sell 155.2 mln shares, which will available for public trade online beginning January 7.

The eight companies are: Dingli Communications (wireless services), Sunwin (rail technology), Xiangfan Tech (semiconductors), Rastar (plastic moulds), Hiconics (variable frequency drives), Shenzhen Tianyuan (software), Inner Mongolia Furui (pharma-tech) and Hwa Create (forgery detection equipment).

Among them, Hiconics will initially be the most ambitious with 30 mln shares on offer while Raster bottoms out the list with 13.2 mln shares.

Analysts therefore expect Hiconics to raise the most from their IPO, 331.72 mln yuan, while Sunwin is seen raising the least at 120.08 mln yuan.

Dingli is seen having a competitive strength in sector-leading innovation in the area of wireless and web-based technology application knowhow, whereas Sunwin is a leading domestic player in the artificial intelligence technology arena.

Shenzhen GEM
(36 firms)
Dec. 29Day-on-day % change

High since Oct. 29

Capitalization (rmb)159.46 bln0.14%160.93 bln
Turnover (rmb)3.38 bln17.7%21.91 bln
Average P/E104.370.14%127.65
Xiangfan can brag of top sales among domestic semiconductor designers and manufacturers, while Rastar excels at product innovation, quick turnaround and a robust sales record.

Rastar doesn’t toy around when it comes to moulding expertise, and still generates most of its revenue from production of remote control cars and other plastic toy moulds.

Shenzhen Tianyuan has done very well for itself executing a gradual shift from designing and manufacturing software supporting the telecom sector to making software needed by both providers and end-users of various telecom services – a high-growth sector.

Furui is making a name for itself by finding applications for crab carapaces in the prevention and treatment of liver disorders, and have won for its products state-level approval and certification.

Finally, as perhaps a perfect example of the variety of innovation the bourse regulator is hoping that the Shenzhen GEM board will nurture, Hwa Create has found itself quite a promising niche – producing forgery detection equipment in China.

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