IPO Approval for JD Capital-invested Xintai Natural Gas
According to CSRC’s recent announcement, Xinjiang Xintai Natural Gas Co., Ltd. (Xintai), once invested by JD Capital, has been approved for its IPO and will soon go public in the A-share market.
Founded in 2002, Xintai focuses on urban gas for domestic use and more specifically on the transmission & distribution and sales of urban gas in mainly seven regions (Urumqi’s Midong District, Fukang City and Wujiaqu City, etc). As of December 31, 2015, it has served 315,900 users of all kinds.
As essential part of urban infrastructure, the urban gas for domestic use is of great importance amid urban modernization. Higher popularity rate of gas for domestic use (generally refers to fuel gas, LPG, natural gas and biogas) in the urban area can help improve people’s living standard, city environment as well as increase the energy efficiency. The rising amount of upstream transmission & distribution pipelines, ongoing urbanization and the strong downstream demand together will contribute to the boom of urban gas industry in China.
In 2012, JD Capital invested in Xintai and held an 18.98% stake prior to the issuance and is the second largest shareholder.