Seven Wuxi enterprises debuted on the New Third Board, or National Equities Exchange and Quotation (NEEQ) index, on Jan 13 in Beijing, reported the Wuxi Daily.
X-ray supplier Wuxi Unicomp Technology and adhesive producer Wuxi Wanli Adhesion Materials Co. were both included in the recently opened NEEQ, an index designed for small and medium-sized enterprises.
Wuxi Unicomp's president Liu Jun told reporters the company planned to enter the capital market in stages with the goal of trading in the A-share market.
Unicomp is a national level high-tech business, involved in the research, development and manufacture of X-ray technology and intelligent detection equipment.
Its technology is used in products ranging from lithium batteries, semiconductors, solar photovoltaic cells, LEDs to automotive parts, with 40 percent of its production exported.
Liu said the company was struggling for investment before it entered the index. "Unicomp is strapped for cash. After going public on the New Third Board, we will receive financing directly from the capital market, instead of debt financing. The company will have broad space for development," Liu said, adding that it will soon raise 50 million yuan ($4.5 million) via private placement.
Wuxi Wanli Adhesion Materials, established in 1995, specializes in the research and development, production and sale of adhesive products.
"It's a rough time for companies against the backdrop of a stagnant economy," said the company's president Zhou Qiping.
Listed companies can gain more popularity and tap into bigger markets, said a director of the finance office of Wuxi New District. So the department introduced local companies policies and intermediary agents, overcome their difficulties and helped file to go public.
Now, Zhou has full confidence in the company for the year ahead and hopes to grow the business with the aid of the capital market.
By the end of 2015, Wuxi had 102 companies listed on the New Third Board – the number accounts for 2.1 percent of all listed businesses on the index. Total capital stock of those companies has reached 3.87 billion shares.
