CHINA’S first initial public offering (IPO) under rules introduced Jan. 1 that make listings easier was oversubscribed more than 4,000 times, showing Chinese investors remain hungry for IPOs despite recent market gyrations over growing economic concerns.

    In a statement late Sunday, Guangzhou Goaland Energy Conservation Tech Corp., a producer of coolants for electricity generators, said its offering of shares worth up to 258.7 million yuan (US$39 million) was 4,335 times oversubscribed.

    The oversubscription ratio was about 10 times that of IPOs before the change of rules, but still within investor expectations, analysts said.

    Chinese investors are typically keen on IPOs as regulatory restrictions, such as guided pricing mechanisms, ensure new shares almost always jump on their debut.

    Under the new rules, pre-paid capital is no longer needed from investors during IPO subscriptions.

    Goaland Energy is one of seven IPOs approved by China’s securities regulator last week under the new system.

    Goaland Energy plans to issue 16.67 million shares at a price of 15.52 yuan per share for a listing in the NASDAQ-style ChiNext market in Shenzhen. Proceeds will be used to expand the company’s core business and supplement working capital, it said in an earlier prospectus. (SD-Agencies)