The initial public offering (IPO) price for drugmaker Guilin Sanjin Pharmaceutical Co has been fixed at 19.8 yuan (US$2.9) per share, the company announced Thursday night.

On June 18, Guilin Sanjin became the first company to win approval for an IPO in China after a nine-month suspension. Regulators halted IPOs last September after the Shanghai index had tumbled 60 percent from its high in 2007.

The company would issue 46 million new shares in the IPO, which was expected to raise 910 million yuan, Guilin said in a statement.

In a previous statement, Guilin Sanjin said it would raise funds for projects requiring 634 million yuan in total investment. The latest statement said the other 276 million yuan would be used to supplement cash flow for construction and production projects, and to repay bank loans if necessary.

Analysts said the issue price was above market expectations.

Guilin Sanjin will list on the Shenzhen Exchange in early July.

(Xinhua News Agency June 26, 2009)