2010-08-16 14:59

BEIJING - Zhejiang Jihua Group Corp, China's biggest provider of military supplies, made a strong debut in Shanghai Monday, underscoring investors' confidence in the country's fast-growth of the sector.

Shares in the Zhejiang-based Jihua Group had surged nearly 82 percent to 6.36 yuan (93 cents) per share at midday Monday.

The company sold 1.16 billion shares, or 30 percent of its enlarged share capital, at a price of 3.5 yuan per share. It raised 4.05 billion yuan ($597 million) in its initial public offering (IPO).

He Keren, vice chairman of Jihua Group, said the company would use the IPO proceeds to boost the competitiveness of its products, including uniforms and footwear, and to replenish its operating capital.

"The listing will promote the healthy and rapid development of our company and also give a strong backing to the nation's drive to modernize its military logistics," he added.

The company's total assets hit 10.33 billion yuan at the end of 2009.