Another Chinese construction giant plans to issue 2.8 bln shares in mainland market
BEIJING -- China Railway Construction Corporation Limited (CRCC), one of the nation's largest road and rail project contractors, is planning to issue 2.8 billion shares in an initial public offering (IPO).
On Jan. 23, China Securities Regulatory Commission (CSRC) will consider the company's application to be listed at the Shanghai bourse.
According to the pre-released prospectus, the capital raised from the IPO would be used to procure construction facilities, expand the manufacturing capacity of mechanic equipments, invest in properties and railways.
The price range and the planned issuing date is yet to be determined.
The total share capital would not exceed 10.8 billion shares after Shanghai listing, said the prospectus.
The company is also actively preparing to issue between 1.8 billion (if the over-allotment option is not exercised) to 2.07 billion shares (if the option is exercised in full) in Hong Kong, said the prospectus.
The company's total assets amounted to 155 billion yuan by the end of November in 2007, with net profit reaching 2.8 billion yuan.
The CRCC limited, established in November after the restructuring, took its name and business from its parent company, China Railway Construction Corporation, which ranked 384 in Fortune 500 ranking last year.
Citic Securities is planning to lead the underwriting.
The CRCC, which established its name from building the Qinghai-Tibet Railway, Shanghai Meglev train, Beijing-Kowloon Railway and the western railway across Hong Kong, took the largest share of 40.3 percent or 33.74 billion yuan (about 4.64 billion U.S. dollars) through its two subsidiaries in the bidding on the civil engineering of China's express railway linking Beijing and Shanghai.
As the other major construction giant, China Railway Group Limited, has seen share price jump by 50 percent since its IPO in November last year, analysts expected the CRCC issue would also score considerable price rises with its net profits expected to reach 3.1 billion yuan in 2007.
