Some of cash to be used to buy 12 newbuildings, writes Sandra Tsui in Hong Kong - Thursday 31 May 2007
HONG Kong-listed China Cosco Holdings is to raise up to $1.92bn through a secondary listing in Shanghai to fund its logistics business ex- pansion and buy newbuildings.
China Cosco Holdings, the flagship arm of China’s largest shipping conglomerate China Ocean Shipping Company Group, said in a regulatory filing that it would issue no more than 20% of its enlarged share capital of 8.92bn shares, or as many as 1.78bn yuan-denominated new shares in Shanghai.
Based on the company’s Hong Kong closing price of HK$8.4 ($1.08) yesterday, the initial public offer in Shanghai will be able to raise up to HK$14.95bn ($1.92bn).
The company plans to spend Yuan6bn ($777m) of the net proceeds to fund the purchase of four 10,000 teu and eight 5,100 teu vessels and Yuan220m to build a depot in Shanghai.
Another Yuan1.68bn will be used to acquire a 51% stake in Cosco Logistic from its state-owned parent group, with a further Yuan401m reserved for project investment through Cosco Logistics.
The listing committee of the China Security Regulatory Commission said it would meet on June 4 to review the firm’s proposal.
HONG Kong-listed China Cosco Holdings is to raise up to $1.92bn through a secondary listing in Shanghai to fund its logistics business ex- pansion and buy newbuildings.
China Cosco Holdings, the flagship arm of China’s largest shipping conglomerate China Ocean Shipping Company Group, said in a regulatory filing that it would issue no more than 20% of its enlarged share capital of 8.92bn shares, or as many as 1.78bn yuan-denominated new shares in Shanghai.
Based on the company’s Hong Kong closing price of HK$8.4 ($1.08) yesterday, the initial public offer in Shanghai will be able to raise up to HK$14.95bn ($1.92bn).
The company plans to spend Yuan6bn ($777m) of the net proceeds to fund the purchase of four 10,000 teu and eight 5,100 teu vessels and Yuan220m to build a depot in Shanghai.
Another Yuan1.68bn will be used to acquire a 51% stake in Cosco Logistic from its state-owned parent group, with a further Yuan401m reserved for project investment through Cosco Logistics.
The listing committee of the China Security Regulatory Commission said it would meet on June 4 to review the firm’s proposal.