BREAKING NEWS: Another Chinese Company Goes Public

Suzhou GoldenGreen Technologies, better known as SGT, has been formally listed on the Shenzhen Stock Exchange.

Based in Suzhou, a city west of Shanghai in northern China, SGT, made news one year ago when it acquired the global Cartridge World store brand.

There have been a number of rumors in the Chinese financial press about SGT making an initial public offering, or IPO, for some time. Sina Finance, for example, “jumped the gun” by making the announcement public on August 2.

Founded in 2002 by Dr Richard Yu (pictured), SGT manufactures 50 million OPC drums every year, making it the second largest manufacturer of drums in the world, behind Canon. The company now joins other well-known Chinese imaging companies to go public with an IPO. Apex (connected to the Ninestar Group) used their IPO funds to acquire Static Control last year and Lexmark this year. When toner manufacturer Hubei Dinglong went public, it acquired a number of brands including the well known Mito and Kolion remanufacturing companies.

According to the Shenzhen Exchange, SGT is publicly offering 30 million shares, including 30 million IPO shares offered at 7.71 yuan (US$1.16) per share and raising funds of 231 million yuan (US$34.78 million). The post-public-offering share capital of Suzhou Goldengreen is 120 million in total. Suzhou Goldengreen Technologies Ltd. principally engages in research and development, manufacturing and sales of organic photo-conductor drums. In 2015, its operating income reached 227 million yuan (US$34.17) with the net profit of 42.2076 million yuan (US$6.45 million).

The Shenzhen stock exchange (pictured) is one of China’s three stock exchanges, alongside the Shanghai Stock Exchange and Hong Kong Stock Exchange. It is based in the Futian district of Shenzhen, Guangdong in southern China. With a market capitalization of its listed companies around US$2.285 trillion in 2015, it is the 8th largest stock exchange in the world, and 4th largest in East Asia and Asia.

The Chinese government has very tough restrictions on companies wanting to make an initial public offerings. Sources tell RT Media that SGT has been working on this IPO for many years.

SGT have not made any public announcement as to what it will do with the capital it raises from this IPO, but some anticipate it will be used to acquire other imaging businesses.

SGT manufactures OPC drums for use in printer cartridges, printers and copiers for both Aftermarket and OEM customers.

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