Shanghai Chaori IPO Application Rejected on Environmental Record

飞雪寒冰

Shanghai Chaori Solar Energy Science & Technology Co.'s IPO application was rejected by regulators because of the company's record of environment penalties, a source from a securities firm told Caijing.

Chaori was fined 100,000 yuan in 2007 for importing banned photosensitive semiconductors, the source said, adding that Chaori's factories were found to be mostly rented from third parties.

Chaori had planned to issue 40 million A shares to fund a solar battery plant in central China's Henan province.

飞雪寒冰

Under IPO rules, a company's record must for a set period be clear of any administrative penalties concerning matters related to tax, land use, environmental protection and customs.

The lack of production facilities also suggests that the company may have been light on assets. IPO candidates are required to demonstrate legitimate ownership of operating assets as well as meet minimum standards for tangible assets.

The planned share offer was to be the first IPO sponsored by Shanghai-listed Pacific Securities Co. (SH 601099), a brokerage based in Kunming, the capital of southwest China's Yunnan province.

The securities firm source was not from Pacific Securities Co.

Shares of Pacific Securities closed down 0.91 percent at 19.63 yuan on July 16.