China Specialty Glass Plans Frankfurt IPO In June - Update

China Specialty Glass AG or CSG, the German holding company of China Specialty Glass Group, said Thursday it intends to go public at the Frankfurt stock exchange in June 2011, depending on market conditions. CSG intends to be listed in the 'Prime Standard' segment of the Frankfurt stock exchange and use the proceeds from the initial public offering or IPO to finance its expansion strategy.

CSG, one of China's largest producers of security glass, had earlier considered a listing of its shares in December 2010, but decided to postpone the IPO due to the unfavorable environment then.

The global coordinator of the transaction will be Viscardi AG. biw Bank für Investments und Wertpapiere AG is acting as joint book runner and joint lead manager.

The company said it plans to use the expected proceeds from the IPO to finance further internal and external growth, including selected acquisitions. The company also plans a new production base as well as the modernization and expansion of the existing production facilities.

In addition, CSG intends to establish a new research and development centre and finance its exclusive distributorship agreement with Saint-Gobain Glass France, a subsidiary of Saint-Gobain Glass (CODGF.PK).

In late May, CSG said its main operating entity, Guangzhou Hing Wah Glass Industry Co. or HWG, concluded an exclusive deal with Saint-Gobain Glass France to exclusively distribute selected advanced glazings solutions within China for a ten-year period.

Since 1994, CSG Group develops, produces and sells specialty glass, especially security glass, under the brand of 'Hing Wah'. The company produces security glass, which protects against forced intrusion and violent physical impacts.

CSG said that based on the growing GDP and the rising wealth of the population in China, it plans to enlarge its output capacities to meet the future demand.

CSG's net profit for 2010 was 22.2 million euros, up from 10.6 million euros in 2008. Revenues for the year grew to 69.6 million euros from 40.2 million euros two years ago.

For the first three months of 2011, the company's net profit was 5.4 million euros and revenues were 16.4 million euros. The company noted that compared with the previous year, this represents a revenue increase of 43.5 percent and an increase in net profit of 60.4 percent.