Stocks News
- Railway readies IPO
Date: 23-Mar-2007 Sources: (Xinhua Online)
China Railway Construction Corp has hired Citic Securities Co, Citigroup Inc and Macquarie Bank Ltd to prepare it for a 2 billion U.S. dollar initial public offering, three people with direct knowledge of the decision told Bloomberg News yesterday.
The former railway arm of the People's Liberation Army may sell shares in Shanghai and Hong Kong as early as the end of the year, the sources said. No final decision has been made on the size or the venue of the offering, they said.
China Railway Construction is seeking funds to help it compete for contracts as the government expands underdeveloped transport networks. Bigger rival China Railway Engineering Group Co is planning a US$1.5 billion IPO, people familiar with the deal said in January.
'Capital is a key element in this industry,' said Jimmy Lam, a Hong Kong-based analyst at BOC International Holdings Ltd. 'The government has to consider whether contractors have the ability to carry out large projects.'
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