Baichuan shares intends to issue 22 million shares and list on the Shenzhen Stock Exchange, accounting for 25.06 per cent of the total share capital after the issue, by combining offline placement to the object of inquiry and online fund application and pricing.

The funds raised by the company are intended to be used for the project with an annual output of 20, 000 tons of trimellitic anhydride and 20, 000 tons of trimellitic acid trioctyl ester, with a total investment of 285.4 million yuan and a construction period of 2 years

We estimate that from 2010 to 2012, the company's earnings per share will be 0.69 yuan, 0.86 yuan and 1.06 yuan respectively. We believe that the company can be valued according to the price-to-earnings ratio of 25-30 times 2010 earnings, and the corresponding application price is 17.25 to 20.70 yuan.