(Yicai Global) Oct. 15 -- Shares of Lihu surged by the exchange-imposed limit after the leading maker of automotive turbocharger components drew strong interest to its mainland China debut from secondary investors, raising a more-than-expected CNY532million (USD76.8 million).
The Wuxi-based company [SHE:300694] gained 44 percent to CNY14.24 (USD2.06) at the start of trading on the Shenzhen Stock Exchange today. It aimed to raise CNY443 million.
Proceeds from the IPO will go toward expanding the company's annual output of turbocharger compressor casings to 6 million units. Lihu projects its market share for the products to rise to 27 percent in 2021 from 18.35 percent in 2016.
Global sales of auto turbochargers rose by a compound annual 12.1 percent to 38 million units in 2016 from 17 million in 2009, public data shows. That's higher than the 6.33 percent increase in worldwide vehicles sales in the same period.
Lihu's main customers include US firms Honeywell International and BorgWarner, Japan's Mitsubishi Heavy Industries and Ishikawajima-Harima Heavy Industries, along with Germany's Bosch Mahle Turbo Systems and other world-renowned turbocharger makers.
Turbochargers, a key part of an internal combustion engine, boost a gasoline engine's fuel efficiency by nearly one-fifth and a diesel motor's by almost half.
Lihu is Honeywell's top supplier of compressor housings. International car marques that also use the firm's product sets include BMW, Audi, Volkswagen, Ford, GM, Toyota and Honda.
Editor: Ben Armour