Chinese Handset Manufacturer Seeks New York Stockmarket Listing

Qiao Xing Universal Telephone says that its major subsidiary, Qiao Xing Mobile Communication (QXM), has filed a registration form with the U.S. Securities and Exchange Commission for a proposed floatation of the company on the New York Stock Exchange. When the IPO is consummated, Qiao Xing Universal will still maintain a majority stake (more than 51%) in QXM.

The company expects to receive between US$137 million and $162 million from the floatation.

The proceeds to be received by the Company from the proposed IPO will be used to repay shareholder loans to Qiao Xing Universal, to fund CECT working capital requirements in connection with its planned mobile phone production capacity expansion, and to purchase equipments for CECT's new manufacturing facility.

Qiao Xing Mobile also said that it expects revenues for the first quarter to come in between US$89.7 million and US$92.3 million, with gross profit of between US$20.6 million and US$21.3 million. The company sold 750,000 handsets in the first quarter of this year."

Posted to the site on 19th April 2007