COSCO SHIPPING Energy Transportation announced on January 24, 2025, that its Board of Directors has approved a proposal to issue a maximum of 1,431,232,918 A Shares to not more than 35 specific target subscribers. This issuance aims to raise gross proceeds of not more than RMB8,000,000,000.
"COSCO SHIPPING has conditionally agreed to subscribe for 50% of the total number of A Shares to be issued," the company stated in a press release. To proceed with the issuance, the сompany will convene an Extraordinary General Meeting (EGM) and Class Meetings to seek shareholder approval. A circular containing detailed information about the issuance will be dispatched to shareholders on or before February 28, 2025.
The proceeds from the A Share issuance will be primarily utilized to fund the construction of 6 Very Large Crude Carriers (VLCCs), 2 LNG carriers, and 3 Aframax crude carriers.
The A-share offering is expected to enhance the company's financial flexibility and support its long-term growth strategy.