China Railway Co Ltd IPO approved
Updated: 2007-11-06 16:36
State-owned China Railway Co Ltd, formerly known as China Railway Engineering Group Co, yesterday received approval from China Securities Regulatory Commission (CSRC) to go public on the Shanghai bourse, and will probably do so within the month, Oriental Morning Post reported.
China Railway plans to sell no more than 4.675 billion A shares, or a 26.75 percent stake, in Shanghai, according to a preliminary document posted on the CSRC website.
Funds raised from the IPO will be used in purchasing new equipment, building new production lines, and for real estate market and railway investment. Together with circulating capital as well as debts to banks, the required funds totals 12 billion yuan (US$1.61 billion), according to an IPO prospectus the company submitted to the securities watchdog.
Besides its domestic A share offering, China Railway also seeks further placement in the H share market, making it the first dual listed company to launch A share before H share.
China Railway Co Ltd is totally owned by China Railway Engineering Group Co Ltd, the largest comprehensive construction contractor in Asia and the third largest in the world.
Half year operating revenue of China Railway Engineering Group Co Ltd ending June 2007 was a reported 75.68 billion yuan, with net profit totaling 1.38 billion yuan.
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