CHINA Galaxy Securities Co. plans to sell A shares in Shanghai in what could be the nation’s biggest first-time stock offering this year after regulators ended a more-than-a-year freeze on initial public offerings (IPOs).

    China’s sixth-largest brokerage by revenue is planning to sell 1.69 billion shares, or an 18.4 percent stake, on the Shanghai Stock Exchange, Galaxy Securities said in a filing with Hong Kong’s stock exchange yesterday.

    Galaxy Securities’ stock ended trading last week in Hong Kong at HK$4.91 (US$0.63), valuing the holding at about US$1.07 billion.

    Eight brokerages, including Guotai Junan Securities Co., the nation’s third largest, are among the more than 600 IPO applicants awaiting approval from the China Securities Regulatory Commission, according to the securities regulator’s website. Galaxy Securities isn’t on that list.

    Chinese companies may raise as much as 250 billion yuan (US$40.6 billion) this year from IPOs and first-time sales, said He Zongyan, a Shanghai-based analyst at Shenyin & Wanguo Securities Co.

    Shaanxi Coal Industry Co.’s 4 billion yuan initial sale is the largest of the 48 Chinese IPOs that started trading this year.

    Galaxy Securities said in yesterday’s statement that proceeds raised from the Shanghai sale will be used to replenish its capital base and for operations. (SD-Agencies)