Fujian Longxi Bearing Corporation Ltd. (China) has launched an initial public offering (IPO) of 50,000,000 "A" shares.

At an offer price of 6 Yuan each, the company hopes to raise net proceeds of 287 million Yuan from the IPO. The price would value the stock at 20 times trailing earnings.

Fujian Longxi said it will use the proceeds to bolster bank loans funding its investment projects. Over the next few years, in five major projects, the company plans to invest over 365 million Yuan to upgrade its production capacity and bring in advanced manufacturing technologies.

Originally founded in 1958 as Fujian Longxi Bearing Factory, Fujian Longxi Bearing Corporation Ltd. has three subsidiaries: Fujian Yongan Bearing Co. Ltd., Fujian Jinduo Auto Steering-Gear Co. Ltd., and Zhangzhou No.2 Automobile Parts Factory.

The company's primary products are spherical plain bearings, tapered roller bearings, agricultural bearings, deep groove ball bearings and various automotive parts. Annual production capacity is approximately 10 million spherical plain bearings, 8 million sets of all other bearings and 120 thousand different auto parts.