Shanghai – Huide Science and Technology is filing for an IPO on the Shanghai Stock Exchange pending regulatory approval.
The firm is based in Shanghai-and makes polyurethane resins, TPU elastomers, polyols and other materials used in PU leather.
Huide plans to float up to 26.7 million shares or 25% of its capital after listing. The offer price is CNY 520m ($82m), said the company’s prospectus in March.
The capital raised will fund a new research centre, smart manufacturing upgrades and a new plant for PU resin and TPU.
Last year the company recorded CNY 1.4bn ($224m) revenue, up by 22% from 2016. Net profit rose by 12% to CNY 110m.
According to the prospectus, Huide was China’s fourth largest maker of PU leather upstream materials in 2016. The firm said it had with 120kT production volume. This accounted for 6% of China’s total production.
The prospectus ranks the top five PU leather material makers in China in 2016 with Huafon in the lead. The firm produced 250kT, equivalent to 13% of the country’s production that year, said the prospectus.
Currency Conversion: Xe.com
| China's top TPU producers | ||||
|---|---|---|---|---|
| Rank | Company | Manufacturing sites | 2016 kT | % China’s Total |
| 1 | Huafon Group | Zhejiang, Shanghai, Guangdong | 250 | 12.57 |
| 2 | Xuchuan Chemical | Jiangsu, Zhejiang | 240 | 12.21 |
| 3 | Huada Chem | Zhejiang, Jiangsu, Shandong | 150 | 7.38 |
| 4 | Huide S & T | Shanghai | 120 | 6.11 |
| 5 | Hexin Holdings | Zhejiang, Fujian | 100 | 5.09 |
| Source: Huide lPO prospectus | ||||
