Ningbo Port Co Ltd, one of China's four biggest deep water ports focusing on international trade, plans to raise about 10 billion yuan ($1.5 billion) via a Shanghai listing in the first half of 2010, sources familiar with the matter said on Monday.
Ningbo Port, which had originally aimed to list in both Hong Kong and Shanghai markets, decided to float local currency yuan-denominated A-shares at the Shanghai Stock Exchange first, said the sources.
It hired BOC International, the investment banking arm of Bank of China (601988.SS) (3988.HK), to advise on its Shanghai initial public offering plan, said the sources who declined to be identified as the IPO process is confidential.
"Right now, Ningbo Port is preparing IPO material including its 2009 annual report. If everything goes smooth, it won't be a problem for it to list in Shanghai in the first half of 2010," said one source.
"Both the securities regulator and local Ningbo government are very supportive about its IPO plan as Ningbo Port is strategically important to China's imports and exports," he said.Ningbo Port is competing with Shanghai International Port (Group) Co (600018.SS), which is China's No.1 port and already a heavyweight stock at the Shanghai bourse, in eastern China.
BOC International declined to comment. Ningbo Port could not be immediately reached for comment.
China's imports and exports fell in the global financial crisis this year, also hurting the bottom lines of its shippers and port operators.
Still, Ningbo Port had planned to merge with its smaller rival Zhoushan Port to jointly fight fast rising competition from the bigger Shanghai Port.
The planned Ningbo-Zhoushan port, near Shanghai, China's financial hub, remains committed to its expansion scheme which will increase its container throughput to 30 million twenty-foot equivalent units (TEUs) by 2020, up from 10.93 million TEUs in 2008, a port official told Reuters in May.
Besides the planned Ningbo-Zhoushan merger, Ningbo Port is also eyeing other acquisition opportunities, said the sources.
The sources said Ningbo Port's Shanghai IPO would fund its further acquisitions and the port in the long run would still seek an overseas listing, very likely in Hong Kong.
"Now, Ningbo Port purely focuses on a Shanghai listing. Hong Kong IPO can be a good option but not for now," said another of the sources.
The Shanghai IPO plan came after Ningbo Port failed to launch a dual listing in the two financial centres due partly to market conditions and regulatory hurdles.
Ningbo Port, which had originally aimed to list in both Hong Kong and Shanghai markets, decided to float local currency yuan-denominated A-shares at the Shanghai Stock Exchange first, said the sources.
It hired BOC International, the investment banking arm of Bank of China (601988.SS) (3988.HK), to advise on its Shanghai initial public offering plan, said the sources who declined to be identified as the IPO process is confidential.
"Right now, Ningbo Port is preparing IPO material including its 2009 annual report. If everything goes smooth, it won't be a problem for it to list in Shanghai in the first half of 2010," said one source.
"Both the securities regulator and local Ningbo government are very supportive about its IPO plan as Ningbo Port is strategically important to China's imports and exports," he said.Ningbo Port is competing with Shanghai International Port (Group) Co (600018.SS), which is China's No.1 port and already a heavyweight stock at the Shanghai bourse, in eastern China.
BOC International declined to comment. Ningbo Port could not be immediately reached for comment.
China's imports and exports fell in the global financial crisis this year, also hurting the bottom lines of its shippers and port operators.
Still, Ningbo Port had planned to merge with its smaller rival Zhoushan Port to jointly fight fast rising competition from the bigger Shanghai Port.
The planned Ningbo-Zhoushan port, near Shanghai, China's financial hub, remains committed to its expansion scheme which will increase its container throughput to 30 million twenty-foot equivalent units (TEUs) by 2020, up from 10.93 million TEUs in 2008, a port official told Reuters in May.
Besides the planned Ningbo-Zhoushan merger, Ningbo Port is also eyeing other acquisition opportunities, said the sources.
The sources said Ningbo Port's Shanghai IPO would fund its further acquisitions and the port in the long run would still seek an overseas listing, very likely in Hong Kong.
"Now, Ningbo Port purely focuses on a Shanghai listing. Hong Kong IPO can be a good option but not for now," said another of the sources.
The Shanghai IPO plan came after Ningbo Port failed to launch a dual listing in the two financial centres due partly to market conditions and regulatory hurdles.