Chinese logistics giant Sinotrans (Group) Co's resources shipping unit plans to raise more than US$1.3 billion in a November IPO here, taking advantage of a global shipping boom, sources said yesterday.
The parent of Hong Kong-listed Sinotrans Ltd is applying to the Hong Kong exchange for its estimated HK$10 billion-plus (S$1.93 billion) initial public offering, five sources close to the deal told Reuters.
The application was moving 'very quickly', a source familiar with the situation said. If it goes through, the state-run firm planned to use the proceeds to expand its fleet.
'The market for bulk shipping is very good now and the IPO money will be used for expansion, to buy more ships,' a second banking source told Reuters.
The Sinotrans group operates 35 bulk cargo vessels and several oil tankers with a total capacity of more than two million deadweight tonnes, sources said.
Strong demand and capacity constraints in the world's major shipyards have elevated vessel prices, especially for bulk cargo vessels.
The parent of Hong Kong-listed Sinotrans Ltd is applying to the Hong Kong exchange for its estimated HK$10 billion-plus (S$1.93 billion) initial public offering, five sources close to the deal told Reuters.
The application was moving 'very quickly', a source familiar with the situation said. If it goes through, the state-run firm planned to use the proceeds to expand its fleet.
'The market for bulk shipping is very good now and the IPO money will be used for expansion, to buy more ships,' a second banking source told Reuters.
The Sinotrans group operates 35 bulk cargo vessels and several oil tankers with a total capacity of more than two million deadweight tonnes, sources said.
Strong demand and capacity constraints in the world's major shipyards have elevated vessel prices, especially for bulk cargo vessels.