China Special Steel’s IPO does not yield profitable
China's Henan province based China Special Steel Holdings Co. Ltd. held its initial public offering (IPO) at Hong Kong Stock Exchange yesterday (May 19). With the IPO, the company obtained $34.2 million with a stock price of $0.19 per share; 8.8% less than what it expected. China Special Steel is a private bearing steel and spring steel producer for auto industry. The IPO of China Special Steel also caused Kunming Iron and Steel to consider postponing its planned $200 million listing. The lower than expected stock price is a result of the slowing down in the Chinese steel industry, partly due to the governmental efforts to prevent overheating in the industry, and due to high raw material costs.