China Shipping Container Lines, the second-largest container line in Asia, attracted 2.6 trillion yuan, or $351 billion, worth of orders for its Shanghai stock sale, according to three people with knowledge of the offering.
The shipping line has said it aims to sell as much as 15.5 billion yuan in stock. The people asked not to be identified before an official announcement.
The sale drew bids for about 170 times the stock on offer, as demand for new shares withstands the worst monthly fall in the Shanghai stock market in at least 12 years. The proceeds will help China Shipping expand its fleet and add routes to compete with a larger rival, China Cosco.
"In the current volatile market, investors prefer new share sales as they are seen as less risky," said Roslyn Ji, an analyst at Core Pacific-Yamaichi International in Hong Kong. "Large companies named after China are particularly favored."
China Railway, the biggest construction company in Asia, drew 150 times the stock on offer for its 22.4 billion yuan Shanghai share sale last month. PetroChina's October sale had $441 billion of bids, or about 50 times the stock on offer. The company became the largest in the world by market capitalization after the sale.
China International Capital and UBS arranged the China Shipping sale. Jessie Sun, a CICC spokeswoman, and Chris Cockerill, a UBS spokesman in Hong Kong, declined to comment. Ye Yumang, China Shipping's company secretary, could not be reached for comment.
The shipping line's Hong Kong shares, which have surged more than fourfold this year, fell 2.3 percent to 6.52 Hong Kong dollars, or $0.84.
China Shipping's yuan-denominated shares may rise at least 30 percent when they start trading, according to Ji. The company plans a debut ceremony at the Shanghai Stock Exchange on Dec. 12.
The company's Hong Kong-listed stock trades at 16.3 times estimated earnings for next year, according to data compiled by Bloomberg. China Cosco shares trade at 32 times estimated earnings for next year in Shanghai and at 13.6 times in Hong Kong.
"There will be a gap between the stock in Shanghai and Hong Kong, as there is more liquidity on the mainland," said Ji.
China Shipping will beat its profit forecast after raising rates for shipments from Europe and carrying more cargo from the United States, the line's chairman, Li Shaode, said Nov. 27.
The shipping line has said it aims to sell as much as 15.5 billion yuan in stock. The people asked not to be identified before an official announcement.
The sale drew bids for about 170 times the stock on offer, as demand for new shares withstands the worst monthly fall in the Shanghai stock market in at least 12 years. The proceeds will help China Shipping expand its fleet and add routes to compete with a larger rival, China Cosco.
"In the current volatile market, investors prefer new share sales as they are seen as less risky," said Roslyn Ji, an analyst at Core Pacific-Yamaichi International in Hong Kong. "Large companies named after China are particularly favored."
China Railway, the biggest construction company in Asia, drew 150 times the stock on offer for its 22.4 billion yuan Shanghai share sale last month. PetroChina's October sale had $441 billion of bids, or about 50 times the stock on offer. The company became the largest in the world by market capitalization after the sale.
China International Capital and UBS arranged the China Shipping sale. Jessie Sun, a CICC spokeswoman, and Chris Cockerill, a UBS spokesman in Hong Kong, declined to comment. Ye Yumang, China Shipping's company secretary, could not be reached for comment.
The shipping line's Hong Kong shares, which have surged more than fourfold this year, fell 2.3 percent to 6.52 Hong Kong dollars, or $0.84.
China Shipping's yuan-denominated shares may rise at least 30 percent when they start trading, according to Ji. The company plans a debut ceremony at the Shanghai Stock Exchange on Dec. 12.
The company's Hong Kong-listed stock trades at 16.3 times estimated earnings for next year, according to data compiled by Bloomberg. China Cosco shares trade at 32 times estimated earnings for next year in Shanghai and at 13.6 times in Hong Kong.
"There will be a gap between the stock in Shanghai and Hong Kong, as there is more liquidity on the mainland," said Ji.
China Shipping will beat its profit forecast after raising rates for shipments from Europe and carrying more cargo from the United States, the line's chairman, Li Shaode, said Nov. 27.