Cosco Shipping to raise $1.

Hong Kong-listed Cosco Shipping Holdings said that it would issue 2,043,254,870 new A shares in a non-public issue to no more than 10 targetted subscribers, with its parent Cosco Shipping agreeing to take up 50% of the new shares. The issue raise up to RMB12.9bn ($1.94bn).

The new A shares will be subject to a lock up period of 36 months for Cosco Shipping and 12 months for other subscribers after which they can be traded on the Shanghai Stock Exchange.

The amount raised from the share issue will be used to pay for much of the balance payments remaining on 20 containership newbuildings that the company has on order. These comprise five 13,800 teu vessels, four 15,568 teu, five 20,119 teu, and six 21,237 teu newbuildings.

The proposed share issue will require the approval of an extraordinary general meeting.

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Cosco Shipping to raise $1.94bn from share issue to fund 20 containership newbuilds