Stocks News
- Shanghai News
Date: 30-Jan-2007 Sources: (Shenzhen Daily)
SHANGHAI-LISTED ship engine maker Hudong Heavy Machinery Co. said it would raise 12 billion yuan (US$1.5 billion) through a private placement in a move seen to help pave the way for a listing of its parent, the world's third-largest shipbuilder.
Shanghai-based Hudong said yesterday its board approved a plan to issue up to 400 million shares at 30 yuan each via a private placement to buy assets including all stakes in shipbuilder, Shanghai Waigaoqiao Shipbuilding Co.
The firm said it will sell the shares to up to 10 institutional investors, among which its parent, China State Shipbuilding Corp., will buy at least 59 percent of the placement.
The new shares would be sold to major State-owned companies including Baosteel Group Corp., China's top steelmaker and parent of Baoshan Iron and Steel Co., Shanghai Electric (Group) Corp. and China Life Insurance (Group) Co., it said.
Hudong's domestic A shares surged their 10 percent daily limit up to 41.49 yuan yesterday. Trading in Hudong had been suspended since last Wednesday as the company said it would make an announcement. The shares were last traded at 37.72 yuan, surging 18.6 percent since the start of this year on talk of an expansion.
'Hudong's expansion will help its parent list its main civilian assets,'the China Securities Journal said.
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