China Railway Construction Corp., the second largest Chinese railroad builder, intends to raise $3.6 billion from its IPO offering in Shanghai. Reuters has reported that the state-run company will offer some 2.8 billion A shares for 8.00 to 9.08 Yuan per share. If share prices reach the high end of the range, then this IPO will top size of the IPO of its larger competitor, China Railway Group.
It also appears that a public offering in Hong Kong will follow the Shanghai offering although the specific price range for the 1.706 shares has not been determined and will be limited to select foreign investors. The listing on Shanghai is anticipated for March 10 and the Hong Kong listing is set for March 13.
In China’s most recent 5 year plan, they allocated $175 billion for investment in railroad infrastructure to alleviate bottlenecks in the booming economy.
February 22, 2008