(ChinaKnowledge, Oct 30, 2006) Ouhua Energy Holdings Ltd., the third-largest liquefied petroleum gas distributor in China in terms of quantity, has launched its initial public offering in conjunction with its proposed listing on the Singapore Exchange Mainboard, in the hope of raising about S$52 million.

Priced at S$0.38 per share, Chaozhou-based Ouhua Energy¡¯s offering will comprise of 90 million new shares and 47 million vendor shares, of which 5 million shares are to be offered to the public. Proceeds will be used to expand its sales network, improve production facility and processes, with the rest used as general working capital for business expansion. 

Due to increased sales volume from 336,500 tons in 2003 to 584,307 tons in 2005, the company¡¯s revenue went up from RMB 919.5 million to RMB 2.48 billion, following the growth of its customer base from 60 to more than 200 over the same period.

In the search for more efficient fuels to meet the Mainland¡¯s immense energy needs, LPG has emerged as the preferred fuel to meet demands due to its advantages like efficiency and cleanliness.

source:ChinaKnowledge