Hilong’s niche appeal

Hilong Holdings, the Chinese oilfield and services provider, could raise up to HK$1.48bn ($190m) from its 400m primary share sale if it prices at the top of a HK$2.50–HK$3.70 a share range. This represents 8.8–13 times price to earnings ratio for 2011. There are no true comparables for Hilong because it offers a niche product. Anhui Tianda and Shandong Oil are the closest and trade between seven and nine times 2011 PE. 25% enlarged share capital.