China Railway Engineering wins HK IPO approval -source

Written by:
Subscribe to Oneindia News

HONG KONG, Nov 9 (Reuters) China Railway Group, the world's third-largest construction contractor by revenue, has won approval from the Hong Kong Stock Exchange for an IPO, which combined with one in Shanghai could raise US billion, a source familiar with the deal said.

State-run China Railway, which plans to offer 3.326 billion H shares in a Hong Kong offering, aims to kick off its pre-marketing on Monday, the source said.

The company will kick off its formal roadshow on Nov. 20, and its Hong Kong retail offering will start on Nov. 23, with a trading debut scheduled for Dec. 7.

China Railway has announced plans to issue up to 4.675 billion new A shares, or 26.75 percent of its enlarged share capital, in the offer, which may be one of the country's 10 biggest IPO.

Domestic subscriptions would be taken on Nov. 20 and 21, and it aims to list on Dec. 3.

The company had assets of 153 billion yuan at the end of June. It posted net profit of 1.38 billion yuan in the first half of this year, against 1.65 billion yuan for all of 2006.

It plans to use the proceeds to expand overseas business, fund new production lines, invest in railways and develop property projects.

The Hong Kong's H share offering is being sponsored by BOC International, JP Morgan and UBS .


Please Wait while comments are loading...