BEIJING, June 15 (Xinhua) -- China's biggest shipping
firm, Cosco Holdings, is hoping to raise at least 13.5 billion yuan (1.78
billion U.S. dollars) when it launches 1.78 billion yuan-denominated shares on
the Shanghai Stock Exchange this month.
A statement from the company said it was offering the shares at an indicative price of 7.60 to
8.48 yuan each, cheaper than its Thursday closing price on the Hong Kong
Exchange of 9.64 Hong Kong dollars.
It is a rare example of a Chinese company returning
to the mainland market, said securities brokers, who anticipated that the price
would rise to 15 yuan by June 19.
The company would use the capital raised to buy 51
percent of Cosco Logistics Co. and 12 new container ships, according to its
listing prospectus. The funds will also be used to build new quays and for other
logistics projects, it said.
The company said 30 percent of the offering will be
made available to strategic investors, 25 percent to institutional investors and
the rest to retail investors.
Online purchases of the shares will begin on June 18,
said the statement.
The company is scheduled to make its trading debut on
the Shanghai Stock Exchange on June 26, said a U.S.-based news agency.
However, a woman who works with lead underwriter
China International Capital Corp. said that the trading date has not been fixed
and the State Securities Regulatory Commission will issue a statement later to
inform investors of the date.
On June 4, China's securities regulatory body
approved COSCO's IPO in Shanghai and said the company's entire capital stocks
should not exceed 8.9 billion shares.
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