China’s top port builder pre-markets US$2bil IPO

China's top port builder, China Communications Construction Co, yesterday started pre-marketing an initial public offering worth up to US$2bil, a source said. The company, which builds ports, roads, bridges, tunnels and airports, was offering 3.5 billion H-shares, or 24.4% of its enlarged share capital, and could exercise a 15% over-allotment option, the source said. The offering is being sponsored by UBS, Merrill Lynch and BOC International. China Communications Construction plans to kick off its formal marketing roadshow on Nov 28, and the retail portion of its Hong Kong offering will run from Dec 1 to 6, with final pricing on Dec 9 and a trading debut set for Dec 15. Billionaires Li Ka-shing and Saudi Prince Alwaleed bin Talal planned to buy strategic stakes in China Communications Construction ahead of its IPO, sources close to the deal told Reuters earlier. The state-run company had aimed to be the second to list simultaneously in Hong Kong and Shanghai, but because of technical issues involved in its domestic IPO, it will list first in Hong Kong and later in mainland China. It was not immediately clear how soon the domestic A-share deal would follow the Hong Kong listing. Beijing-based China Communications Construction was set up last year through the merger of China Harbor Engineering Co and China Road and Bridge Corp.