Cosco eyes Shanghai dual listing

Hong Kong: Having been listed in Hong Kong for just a year one of the world's fastest growing container listing is looking at a dual listing in Shanghai to help fund its extraordinary growth. China COSCO Holdings plans to issue up to 1.5bn A shares in Shanghai to raise 7.7bn yuan, Hong Kong's Standard newspaper reported Monday. It will use the proceeds to purchase new container vessels and acquire a 51 percent stake in the logistics business of its parent, stated-owned Cosco Group. The world's fifth-largest container carrier will use 6bn yuan to finance capital expenditure related to 12 new vessels in the next four years. About 1.68bn yuan will be used to acquire a 51 percent holding in Cosco Logistics. China COSCO's 1.5bn A-share issue in Shanghai represents 19.6 percent of the enlarged share capital, and will result in a dilution of its H shares by 7 percent to 29.3 percent. At present, China COSCO owns 139 vessels, with a total capacity of 381,000 teu.  [02/10/06]