Railroads News
- China Railway Construction prepares for listing
Date: 8-Nov-2007 Sources: (Shenzhen Daily)
STATE-OWNED railway construction contractor China Railway Construction Corp. has set up a unit to hold its major assets, paving the way for an initial public offering (IPO) of the company, domestic media said yesterday.
Like its peer, China Railway Engineering Corp., China Railway Construction has been considering a stock market listing to boost its capital, sources said in July.
China Railway Construction, with total assets of 82 billion yuan (US$11 billion), may float the newly formed unit in Hong Kong by the end of this year or in early 2008, raising 15.6 billion yuan (US$2.09 billion), the Shanghai Securities News said, quoting unnamed sources. It gave no other details.
The Ministry of Railways has made financial reform of the sector a priority, urging railway operators and equipment makers to list their shares to boost capital and strengthen management.
China Railway Group, a unit of China Railway Engineering, is launching a Shanghai IPO which sources said could raise around US$3 billion.
It is issuing up to 4.675 billion new A shares, or 26.75 percent of its expanded share capital, in an offer which may become one of the country's 10 biggest IPOs.
China Railway Group has said it also aimed to list in Hong Kong by issuing up to 3.326 billion H shares after the domestic A-share offer.
Two State locomotive and railway equipment makers, China Northern Locomotive and Rolling Stock Industry (Group) Corp. and China Southern Locomotive and Rolling Stock Industry (Group) Corp., are also considering launching IPOs, possibly next year, executives of the companies said earlier this year.
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